The International Monetary Fund (IMF) has disbursed $138 million to El Salvador. This funding is part of a $1.4 billion financing program under a 40-month Extended Fund Facility aimed at revitalizing the country’s economy.
The disbursement moved forward even though El Salvador breached several previously agreed performance criteria, particularly concerning Bitcoin accumulation. The IMF ultimately granted a waiver to the government, approving the subsequent payout in light of reform commitments and concrete corrective measures taken by Salvadoran authorities to mitigate financial risks.
However, the waiver from the global lender demands one fundamental operational change.
Privatization of Chivo Infrastructure
The Salvadoran government must continue scaling back direct state involvement in day-to-day Bitcoin activities. A key corrective step recognized by the IMF is relinquishing control over national crypto infrastructure. Majority ownership and operational control of the state-owned digital wallet, Chivo, have now been transferred to a private operator, leaving the government with only a minority stake in the wallet service provider.
The same report also clarified the origin of El Salvador’s crypto reserves. In November 2025, El Salvador claimed to have acquired an additional 1,090 BTC valued at $100 million. The IMF document addressed that claim, affirming that the coins came purely from private donations rather than purchases funded by public budgets.
Ban on Accumulating Bitcoin With Taxpayer Money
Going forward, El Salvador’s scope for expanding its Bitcoin reserves will narrow significantly. The IMF report outlined that there are no plans for future Bitcoin accumulation, with the nation only allowed to accept coin additions through documented donations. This rule prevents the government from using taxpayer money to purchase digital assets on the open market.
Beyond tightening crypto rules, the $138 million disbursement was unlocked thanks to progress across several reforms. The IMF recognized the Salvadoran government’s success in overhauling the financial sector, noting improvements in fiscal transparency as well as enhanced anti-money laundering and counter-terrorist financing (AML/CFT) frameworks.
The IMF’s decision outlines the tolerance limits of traditional financial institutions toward state-level crypto experiments. El Salvador may retain its identity as a Bitcoin-adopting nation, provided it offloads operational risks to the private sector and keeps them off the sovereign balance sheet.
Reported via Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
