The International Monetary Fund (IMF) has commended El Salvador for its economic improvements while simultaneously criticizing the nation's ongoing adoption of Bitcoin.
In a statement released Friday, the IMF announced the approval of a $139 million disbursement to the Central American country. Alongside the funding announcement, the organization emphasized its efforts to reduce state involvement in Bitcoin-related activities.
El Salvador first made Bitcoin legal tender in 2021, a move that drew criticism from the IMF and other major global institutions as the country negotiated a development loan. In late December, El Salvador and the IMF entered into a $1.4 billion loan agreement, which included requests for the nation to scale back specific aspects of its Bitcoin strategy.
Despite certain performance criteria regarding Bitcoin accumulation not being met, the IMF stated that waivers were granted based on strong corrective measures and renewed commitments. The agency also noted that state involvement in Bitcoin is being unwound and that no further cryptocurrency accumulation is planned beyond documented donations.
The IMF previously stated in September that El Salvador was not using public funds to acquire Bitcoin during a certain period, relying instead on private donations. In contrast, El Salvador's Bitcoin Office has repeatedly maintained that the country does buy the cryptocurrency.
President Nayib Bukele announced in 2022 that the country would purchase one Bitcoin per day, though the source of the funding was not consistently clear. When El Salvador initially made Bitcoin legal tender in 2021, the state gifted the cryptocurrency to citizens and debuted a digital wallet to encourage usage within the dollarized economy. In 2024, President Bukele acknowledged that citizens were not using the cryptocurrency for purchases as initially anticipated, though he continued to highlight government accumulation efforts.
"Economic activity has exceeded expectations, supported by sustained improvements in security and investor confidence, as macroeconomic imbalances continue to be addressed," the IMF stated.
