IMF Clears El Salvador of Bitcoin Breach, Approves $138M Payout

El Salvador has obtained a waiver from the International Monetary Fund (IMF) regarding its Bitcoin holdings. The IMF approved a $138 million payout to El Salvador, despite breaching rules related to Bitcoin accumulation.

The country's economic activity has exceeded expectations, with fiscal consolidation advancing in line with required financial reforms. However, the IMF noted that certain performance criteria were not met, including on the Bitcoin front. El Salvador's reserve now stands at 7,792 BTC, which was accumulated through private donations.

The IMF praised the recent transfer of Chivo wallet's majority control to a private operator as a 'welcome step'. The institution highlighted that strong corrective measures and renewed commitments led to the waiver. However, it remains to be seen if President Bukele will continue to grow El Salvador's Bitcoin stash or comply with the IMF's requirements going forward.