El Salvador’s Bitcoin Reserve Survives IMF Review with Funding Unlocked

El Salvador has secured access to $138 million from the International Monetary Fund (IMF) after completing the second and third reviews of its $1.4 billion loan program. The IMF disbursed the funds on Oct. 1, granting waivers for unmet performance criteria tied to Bitcoin accumulation. The government had previously breached the program's constraints but took corrective measures and renewed its commitment to limit further state Bitcoin purchases.

The country currently holds about 7,794.37 Bitcoin, valued at roughly $666.1 million. The IMF has emphasized that any additions to this reserve must come from documented donations, not public funds. This distinction allows the government to maintain its Bitcoin holdings without violating the IMF agreement.

The IMF also noted progress in reducing the state's direct role in crypto, including the transfer of majority ownership of the government-backed Chivo wallet to a private operator. However, remaining public-sector exposure should still be unwound. The Fund has called for improved disclosure of public-sector crypto holdings, stronger regulation for digital-asset providers, and amendments to the Digital Asset Issuance Law where necessary.

Future reviews will hinge on El Salvador's ability to document how its Bitcoin balance changes while completing the remaining reforms. Any unexplained accumulation could force the government to seek further waivers before accessing additional financing.