IMF Approves New Loan for Bitcoin-Reliant Salvador Amid Growing Financial Risks

Salvador's bitcoin stash has grown to over 7,800 units, with an estimated value of more than $659 million, thanks to the cryptocurrency's recent price surge. The country's Chivo fund, established for managing its bitcoin reserves, has seen a significant increase in its holdings since August.

The latest development comes as the International Monetary Fund (IMF) has approved another $138 million loan to Salvador, despite growing concerns over the country's reliance on Bitcoin as a store of value. The IMF has warned that if the country continues to accumulate more bitcoin without proper oversight, it may face significant financial risks.

The new funding agreement is part of a broader program aimed at supporting Salvador's economic development and stabilizing its finances. However, the IMF has made it clear that any future bitcoin purchases must be funded by private donations rather than public funds.