While El Salvador remains one of the most closely watched countries for its Bitcoin strategy, the IMF agreement calls for less direct state involvement in crypto assets.
The International Monetary Fund has approved a disbursement worth SDR 101.96 million ($138 million) for El Salvador after granting the government a waiver for its failure to meet a condition related to Bitcoin accumulation.
The IMF Executive Board completed the second and third reviews of El Salvador’s Extended Fund Facility program on October 1.
Limits for Bitcoin Accumulation
The IMF said El Salvador’s economy has performed better than expected, helped by improved security and stronger investor confidence. The country has also made progress in reducing fiscal imbalances. Its reserve and liquidity buffers have strengthened, while fiscal consolidation has broadly stayed on track. However, some program conditions were not met. One of them involved the government’s Bitcoin accumulation. The IMF granted waivers based on “corrective measures and renewed commitments” from the Salvadoran authorities.
Under the latest program commitments, El Salvador is not expected to accumulate more Bitcoin beyond documented donations. The IMF also said the government is working to reduce its role in BTC-related activities, which includes plans to improve transparency around public-sector crypto holdings and strengthen rules governing crypto-asset companies.
“Efforts will continue to reduce the state’s involvement in Bitcoin-related activities, strengthen crypto‑asset regulation and governance, and enhance transparency regarding public-sector crypto‑asset holdings. No further Bitcoin accumulation is envisaged beyond the documented donations.”
Chivo’s Government Role Shrinks
The government’s Chivo digital wallet has also moved toward private control. According to the IMF, majority ownership and control of Chivo have been transferred to a private operator. The remaining public-sector exposure should eventually be unwound.
El Salvador agreed to a 40-month IMF program in February 2025. The program provides total access of about $1.4 billion. The latest disbursement is part of that broader financial arrangement. The IMF said the country still needs to carry out further reforms to strengthen public finances, rebuild external reserves and improve financial-sector resilience. Pension and civil service reforms are also expected to move forward after earlier delays.
The IMF also called for stronger governance and greater transparency while highlighting areas such as public-sector reporting, beneficial ownership disclosures, asset declarations, and anti-money laundering rules. These reforms were crucial for maintaining economic stability.