IMF Approves $138M for El Salvador as Bitcoin Role Shrinks

The International Monetary Fund has approved about $138 million in immediate funding for El Salvador, allowing the country to move forward with its $1.4 billion financing program despite missing some agreed performance targets.

The IMF Executive Board completed its second and third reviews of El Salvador’s 40-month Extended Fund Facility on Thursday. Some conditions were not met, including requirements linked to Bitcoin accumulation, but the IMF granted waivers after authorities presented corrective measures and renewed commitments.

A key issue was the growth of El Salvador’s Bitcoin holdings. The IMF said information provided by the Salvadoran government showed that the additional Bitcoin came from private donations rather than new purchases funded with public money.

The clarification is important because El Salvador’s Bitcoin strategy has been closely watched under the IMF program. In November 2025, the country reported acquiring 1,090 BTC worth around $100 million, raising fresh questions about whether it was following the terms of its financing agreement.

The IMF said El Salvador will continue taking steps to reduce the government’s direct role in Bitcoin-related activities. The country is also expected to strengthen rules governing crypto assets and improve transparency around digital assets held by the public sector.

“No further Bitcoin accumulation is envisaged beyond the documented donations,” the IMF said.

The lender also highlighted progress in several other areas, including financial-sector reforms, fiscal transparency and measures targeting money laundering and terrorist financing.

Another major development involved Chivo, the government-backed Bitcoin wallet. According to the IMF, majority ownership and operational control of the wallet have now been transferred to a private operator. The Salvadoran government still holds a minority stake and maintains custodial responsibilities.

The changes mark a shift in how El Salvador manages its cryptocurrency policy as it works to remain compliant with the IMF program.

While the country has not abandoned Bitcoin, the latest agreement points toward a reduced government role, tighter crypto regulation and greater transparency over public-sector holdings. The IMF’s decision to approve the funding suggests that the corrective steps were sufficient to keep the broader financing program on track.