IMF Clears $138M El Salvador Payment Amid Bitcoin Reserve Concerns

The International Monetary Fund (IMF) has approved a $138 million payout to El Salvador, despite the country's violation of IMF rules regarding its bitcoin reserves. The IMF praised El Salvador's economic performance, noting that its economy has 'exceeded expectations' and fiscal consolidation is advancing as required. However, the institution highlighted that the country's bitcoin goals were not met, and that its reserve has continued to grow to 7,792 BTC, despite IMF recommendations. The IMF issued a waiver for these breaches, citing 'strong corrective measures and renewed commitments' from El Salvador to reduce its direct state involvement in cryptocurrency activities and enhance transparency around public sector holdings. The IMF's First Deputy Managing Director, Dan Katz, stated that the transfer of Chivo Wallet's majority control to a private operator is a 'welcome step' in unwinding the state's involvement in bitcoin-related activities.