El Salvador’s Bitcoin Holdings Remain Intact Following IMF Loan Review

El Salvador obtained $138 million in IMF financing after agreeing to maintain restrictions on additional state-backed Bitcoin purchases.

On October 1, the IMF concluded the second and third reviews of El Salvador’s $1.4 billion loan program, clearing the way for an immediate disbursement of SDR 101.96 million (about $138 million). The fund also issued waivers for missed Bitcoin‑related performance targets after the government implemented corrective actions and reaffirmed its commitments.

These waivers allow the funding to continue despite prior shortfalls, while the IMF’s stance on Bitcoin remains unchanged: only donations may add to the reserve, and the government may not use public funds to buy more Bitcoin under the program.

El Salvador’s Bitcoin holdings stand at approximately 7,794.37 BTC, worth around $666.1 million. The reserve’s size continues to attract scrutiny, as recent increases in government‑linked wallets seem at odds with the IMF accord.

The IMF has long differentiated between Bitcoin bought with state funds and coins obtained via documented donations. This distinction remains key after the latest review: the reserve may grow through donations without indicating that President Nayib Bukele’s administration has resumed public‑funded Bitcoin buying.

The Bitcoin‑related waiver was part of a broader assessment in which the IMF noted that fiscal consolidation is progressing in line with program goals and that reserve and liquidity targets have been met comfortably. The 40‑month Extended Fund Facility, approved in February 2025, aims to underpin fiscal adjustment, bolster reserves, and advance financial‑sector reforms.

The IMF also noted progress in limiting the government’s direct involvement in cryptocurrency. While ownership and control of the state‑backed Chivo wallet have been transferred to a private operator, the fund stressed that any remaining public‑sector exposure must be completely eliminated.

Several Bitcoin‑related obligations remain unresolved even as the next tranche of financing becomes accessible.

The IMF urges El Salvador to enhance transparency of its public‑sector crypto holdings, tighten regulation and oversight of digital‑asset service providers, and revise its Digital Asset Issuance Act as needed. These steps accompany the ongoing pledge to refrain from further government‑funded Bitcoin acquisitions.

Because of these restrictions, the government has limited capacity to grow its Bitcoin reserve via balance‑sheet expansions while staying within the IMF program, despite the rising market value of its existing holdings driven by higher BTC prices.

Future IMF reviews will depend partly on El Salvador’s ability to document changes in its Bitcoin balance as it finishes the Chivo wallet divestiture and transparency reforms. Unexplained increases in holdings could compel the government to request additional waivers before drawing further program funds.

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