IMF Reverses Stance on El Salvador's Bitcoin Holdings

The International Monetary Fund (IMF) has reversed its stance on El Salvador's Bitcoin stash. Initially, the IMF claimed that the country's reported accumulation of Bitcoin was merely an internal transfer of coins between government wallets, with no net change in holdings.

However, the IMF now confirms that El Salvador's holdings have genuinely grown, funded entirely by private donations rather than public coffers.

This concession is significant because it removes a cloud hanging over El Salvador's $1.4 billion Extended Fund Facility program. A staff-level agreement covering the second and third reviews of this program could unlock roughly $140 million in disbursements, pending Executive Board approval.