The International Monetary Fund approved a $138 million disbursement to El Salvador on October 1, 2026, after waiving a breach of its loan conditions regarding Bitcoin accumulation. El Salvador demonstrated that its growing reserve of 7,792 BTC was funded by undisclosed private donations rather than public resources. To secure the funds, El Salvador also reduced state exposure to crypto by transferring majority control of the Chivo wallet to a private operator and ending mandatory Bitcoin acceptance.
Approval of the IMF disbursement
- ▪The International Monetary Fund disbursement was authorized after completing the second and third reviews of El Salvador's 40-month, $1.4 billion Extended Fund Facility program.
- ▪The International Monetary Fund Executive Board approved an immediate disbursement of approximately $138 million to El Salvador on October 1, 2026.
IMF rules on Bitcoin accumulation
- ▪The International Monetary Fund granted El Salvador waivers for missing certain performance criteria under its loan program, including a condition limiting public-sector Bitcoin accumulation.
- ▪The International Monetary Fund's original program with El Salvador placed a continuous restriction on voluntary Bitcoin accumulation, defined as purchases or mining, by the public sector.
- ▪The International Monetary Fund stated that no further Bitcoin accumulation is expected by El Salvador beyond documented donations under the current lending program commitments.
Donations to El Salvador's Bitcoin reserves
- ▪El Salvador's official Bitcoin reserve has grown to 7,792 BTC, according to official government numbers.
- ▪El Salvador provided documentation to the International Monetary Fund showing that recent additions to its government-controlled Bitcoin wallets came from private donations rather than public resources.
- ▪The identities of the private donors and the individual amounts of their Bitcoin donations to El Salvador have not been made public.
Status of the Chivo wallet
- ▪Majority ownership and operational control of El Salvador's government-backed Chivo wallet has been transferred to a private operator.
- ▪The International Monetary Fund's First Deputy Managing Director, Dan Katz, stated that El Salvador's remaining public-sector exposure and minority stake in the Chivo wallet should be fully unwound.
El Salvador's Bitcoin laws
- ▪El Salvador became the first country to adopt Bitcoin as legal tender in 2021, alongside the U.S. dollar.
- ▪El Salvador amended its Bitcoin Law in 2025 to end mandatory Bitcoin acceptance for private businesses and require taxes to be paid in U.S. dollars.
Economic projections for El Salvador
- ▪The International Monetary Fund projects El Salvador's real GDP will grow by 4.5% in 2026 and 4% in 2027.
- ▪The International Monetary Fund projects El Salvador's gross international reserves will reach $5.35 billion in 2026 and $6.17 billion in 2027.
Debatable claims
- ▪The IMF has an appropriate role in restricting sovereign nations' cryptocurrency policies
- ▪El Salvador's strong economic growth is driven primarily by its Bitcoin policies
- ▪The IMF's waiver of El Salvador's Bitcoin accumulation breach was justified
Story comments
Loading comments…