IMF Review Clears El Salvador to Access $138 Million, Cautions on Bitcoin Accumulation
The International Monetary Fund (IMF) has completed its review of El Salvador's $1.4 billion loan program, allowing the country to access a disbursement of $138 million. The review comes after the government took corrective measures to address concerns over its Bitcoin accumulation. El Salvador currently holds around 7,794.37 Bitcoin, valued at approximately $666.1 million.
The IMF has previously distinguished between Bitcoin acquired with public money and coins received through documented donations. This distinction remains in place, meaning that the government can still receive donations without signaling a resumption of publicly funded purchases. The government has transferred majority ownership and control of the Chivo wallet to a private operator, but the IMF wants the remaining public-sector exposure to be fully unwound.
The IMF wants El Salvador to improve disclosure of public-sector crypto holdings, strengthen regulation and governance for digital-asset providers, and amend its Digital Asset Issuance Law where necessary. The government has also committed to avoiding additional government-funded Bitcoin accumulation. Future reviews will hinge partly on whether El Salvador can document how its Bitcoin balance changes while completing the remaining Chivo unwind and transparency reforms.