IMF Clarifies El Salvador's Public Bitcoin Holdings

The International Monetary Fund (IMF) has clarified that El Salvador has not used public funds to buy Bitcoin since its last review of the country's loan program. The IMF stated that the Central American nation received Bitcoin from private donations, citing documentation provided by the government.

This announcement comes after President Nayib Bukele said in 2022 that El Salvador would buy one Bitcoin per day but never made it clear where the funds were coming from or if he was actually buying at all. The IMF report also mentioned that public participation in the government-sponsored Bitcoin wallet has been largely wound down, with majority ownership and operational control handed to a private operator.

The country's decision to make Bitcoin legal tender in 2021 sparked criticism from institutions like the World Bank and the IMF, which have long criticized President Bukele's Bitcoin law. However, since launching a crime crackdown to tackle the country's notorious crime gangs, murder rates in El Salvador have plummeted.