Key Takeaways
The IMF approved a $138M payout for El Salvador, waiving rules violated by its growing bitcoin reserves.El Salvador expanded its reserve to 7,792 BTC via private donations, continuing to test IMF limits.Privatizing Chivo wallet helped El Salvador show corrective action to reduce direct state crypto ties.
IMF Issues Bitcoin Waiver, Authorizes $138 Million Disbursement to El Salvador
El Salvador seems to have obtained a pass from the International Monetary Fund (IMF) after infringing a rule that forced the nation to confine its engagement in bitcoin-related economic activities, including purchases.
On Thursday, the IMF Executive Board completed the second and third reviews of El Salvador’s performance under a $1.4 billion extended fund facility greenlit in February 2025. The institution praised the government’s compliance with the credit facility conditions, approving a disbursement of about $138 million.
In its report, the IMF stresses that El Salvador’s economic activity has “exceeded expectations,” with fiscal consolidation advancing broadly in line with required financial reforms.
While the IMF applauded the recent transfer of Chivo wallet’s majority control to a private operator, it highlighted that “certain performance criteria were not met, including on the Bitcoin accumulation front,” referring to the continued additions to the country’s bitcoin reserve, which has already risen to 7,792 BTC according to official numbers.
Even so, the IMF waived these infringements due to “strong corrective measures and renewed commitments,” proposing to reduce the state’s involvement in these purchases and enhance transparency around the public sector’s crypto holdings.
Previously, the IMF explained that the funding for the bitcoin added to the country’s reserves came from an undisclosed private donor and that no public holdings were involved in these transactions. While the donor’s identity was not disclosed, some pointed to Tether, the giant stablecoin issuer, which moved its headquarters to El Salvador. Nonetheless, no official clarification has been issued.
“The state’s involvement in Bitcoin-related activities is being unwound while related regulations are enhanced,” said Dan Katz, IMF First Deputy Managing Director, labeling Chivo Wallet’s ownership transfer as a “welcome step.”
While he stressed that no further Bitcoin accumulation was expected beyond the documented donations, El Salvador has continued to acquire, or, as it is known now, to receive donations in BTC, disregarding the IMF’s past recommendations.
It remains to be seen if President Bukele will continue to grow El Salvador’s bitcoin stash or if he will stop receiving these donations, complying with the IMF’s requirements going forward.
