The International Monetary Fund has stated that El Salvador's government Bitcoin purchases will not continue beyond those funded through private donations.
The announcement follows the IMF staff's achievement of a staff-level agreement on the second and third reviews of El Salvador's Extended Fund Facility. If approved by the Executive Board, the country will receive approximately $140 million in additional financing under the program.
Donations Behind Recent Bitcoin Growth
El Salvador entered a 40-month IMF Extended Fund Facility arrangement in February 2025, which provides approximately $1.4 billion in funding. The IMF has maintained close oversight of the country's Bitcoin policy since then.
The Fund confirmed that recent Bitcoin accumulation in El Salvador's Strategic Bitcoin Reserve Fund reflects private donations, with no public resources used. The IMF stated it has received documentation verifying the source of these assets.
Regulatory Changes and Economic Outlook
El Salvador and the IMF also agreed on measures to strengthen oversight of digital assets more broadly. These include tightening the legal and regulatory environment for the crypto industry and enhancing public sector digital asset supervision and risk management.
The Chivo e-wallet, El Salvador's state-backed digital wallet, has transitioned to majority private ownership and local management, with the government retaining a minority stake.
The IMF projected real GDP growth of 4.5% for El Salvador in 2026, supported by remittances, tourism, investment, and domestic consumption. The Fund also forecast the non-financial public sector primary surplus will rise from 2.9% of GDP in 2025 to 3.7% in 2027.
