IMF approves $138M disbursement to El Salvador after waiving Bitcoin accumulation requirements, signaling a shift away from state crypto adoption.
Regulation & Gov ·
The International Monetary Fund approved a disbursement of $138 million to El Salvador after waiving requirements that the country accumulate Bitcoin, citing improved economic performance as justification for the conditional relief. The decision represents a formal softening of prior IMF terms that had tied disbursements to crypto asset holdings.
Under the waiver, El Salvador is not expected to acquire Bitcoin beyond documented donations and is instead directing effort toward reducing its involvement in cryptocurrency activities. The country has moved the Chivo digital wallet to private control and is pursuing additional reforms aimed at strengthening public finances and governance within the framework of its IMF program.
The shift signals divergence from El Salvador's earlier strategy of state-led Bitcoin adoption. Whether the country will pursue other forms of crypto engagement or maintain distance from digital asset initiatives remains unclear, as does the timeline and scope of planned transparency and regulatory improvements.