El Salvador receives $138 million from IMF after Bitcoin waivers granted
Efforts will continue to reduce the state’s involvement in Bitcoin-related activities and to strengthen crypto‑asset regulation and governance, the IMF said.
The International Monetary Fund (IMF) has approved the release of $138 million to El Salvador, despite the country missing certain performance criteria under its $1.4 billion financing program. This decision was made during the IMF's second and third reviews of El Salvador's Extended Fund Facility (EFF) arrangement, which concluded on Thursday.
The IMF waived the criteria related to Bitcoin accumulation, citing "strong corrective measures and renewed commitments" from El Salvador. The agency acknowledged progress in financial sector reforms, fiscal transparency, Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures, and the transfer of majority ownership and control of the government's Chivo Bitcoin wallet to a private operator. The IMF emphasized that no further Bitcoin accumulation is expected beyond the documented donations.
El Salvador has committed to reducing its involvement in Bitcoin-related activities and strengthening crypto-asset regulation and governance. According to the IMF, the country's increase in Bitcoin holdings did not result from additional government purchases but rather from private donations. The majority ownership and operational control of the Chivo wallet have been transferred to a private entity, while the government retains a minority stake and custodial responsibilities.
The IMF's decision was based on documentation provided by Salvadoran authorities, verifying that the Bitcoin accumulation came from private sources.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
