IMF Demands El Salvador Reduce State Role in Bitcoin Amid Ongoing Financing Arrangement

The International Monetary Fund (IMF) has approved $138 million in funding for El Salvador as part of its $1.4 billion financing arrangement, which is set to last 40 months.

As a condition of this approval, the IMF is pressing the government to limit its role in Bitcoin activity and strengthen oversight of crypto assets.

El Salvador has committed to reducing state involvement in Bitcoin-related activities and making no additional purchases apart from those already recorded as donations.

The country also plans to improve transparency around public sector crypto holdings and transfer majority ownership and operational control of its Chivo Bitcoin wallet to a private operator.