IMF Waives Bitcoin Breach for El Salvador, Approves $138 Million Payout

The International Monetary Fund (IMF) has approved a $138 million payout to El Salvador after waiving a breach of its Bitcoin accumulation rule. The move comes after the country showed that the coins in question came from private donations, not public funds.

The IMF had found that El Salvador did not meet several performance targets, including those related to Bitcoin collection by the public sector. However, the organization waived the breach due to strong corrective measures and renewed commitments made by the government.

As a result of the waiver, the government will no longer be allowed to accumulate Bitcoin beyond documented donations. The IMF also wants El Salvador to reduce its role in the Chivo wallet, which was launched as part of the country's Bitcoin rollout.