The IMF has just unlocked approximately $138 million for El Salvador after completing the second and third reviews of the country’s $1.4 billion financing program.
But there’s a major Bitcoin twist. 👀
🇸🇻 El Salvador missed a performance criterion related to Bitcoin accumulation.
Instead of blocking the funds, the IMF granted a waiver after authorities provided corrective measures and renewed commitments.
And here’s the part Bitcoin investors should pay attention to:
👉 The IMF says no further Bitcoin accumulation is envisaged beyond documented donations.
So while El Salvador is still holding Bitcoin, the country’s relationship with BTC is changing.
🔥 What changed?
The IMF says El Salvador is working to reduce the state’s direct involvement in Bitcoin-related activities.
The majority ownership and control of the government-backed Chivo e-wallet has also been transferred to a private operator.
At the same time, the IMF wants greater transparency around the government’s remaining crypto holdings and stronger regulation of digital assets.
This is important because El Salvador became the first country to adopt Bitcoin as legal tender in 2021.
Now, several years later, the country is effectively trying to balance two very different priorities:
Bitcoin adoption 🇸🇻₿
vs.
IMF financial discipline 💰
💡 The interesting part
The IMF did NOT simply say:
❌ “El Salvador must abandon Bitcoin.”
Instead, the message appears much more targeted:
✔️ Reduce direct government involvement
✔️ Increase transparency
✔️ Strengthen crypto regulation
✔️ Avoid further accumulation beyond documented donations
✔️ Continue broader economic reforms
And despite the Bitcoin-related issue, the IMF still approved the $138 million disbursement.
That creates a fascinating question for the crypto market:
Can a country remain strongly pro-Bitcoin while reducing direct state involvement in Bitcoin?
Because if El Salvador manages to prove that Bitcoin can coexist with stronger fiscal discipline and private-sector participation, this experiment could become even more important for other countries considering crypto adoption.
🇸🇻 El Salvador's Bitcoin experiment isn't over.
It may simply be entering a new phase.
What do you think?
Bullish for Bitcoin adoption — or a warning that governments can't freely accumulate BTC with public resources? 👇