IMF review leaves El Salvador’s $666 million bitcoin reserve intact

The International Monetary Fund completed the second and third reviews of El Salvador’s $1.4 billion Extended Fund Facility on Oct. 1 and authorized an immediate disbursement of SDR 101.96 million, roughly $138 million, after granting waivers for unmet Bitcoin-related performance criteria while maintaining a ban on fresh state-funded bitcoin purchases.

The waiver preserves access to program financing but limits any increases in the country’s bitcoin holdings to coins received as documented donations. The IMF statement included: “No further accumulation is envisaged beyond documented donations.” The Fund said authorities had taken corrective measures and renewed commitments after unexplained additions appeared in government-linked bitcoin wallets.

El Salvador currently holds about 7,794.37 bitcoin, valued by the IMF at roughly $666.1 million. Some additions to wallets tied to the state were judged inconsistent with the program’s conditions. By granting waivers, the IMF kept the program’s rule that public purchases cannot resume while the facility remains in effect unless any additions are fully documented.

Part of the review addressed steps to reduce direct public-sector exposure to crypto. The government has transferred majority ownership and control of the state-backed Chivo wallet to a private operator, but the Fund said remaining public-sector exposure must be fully unwound. The IMF listed measures the authorities should take, including improved disclosure of public-sector crypto holdings, stronger regulation and governance for digital-asset providers, and amendments to the Digital Asset Issuance Law where needed.

The Fund said fiscal consolidation is proceeding broadly in line with program objectives and that reserve and liquidity targets have been met under the 40-month facility approved in February 2025. Future reviews will examine whether the government can fully document changes to its bitcoin balance and complete the Chivo unwind and transparency reforms. Any unexplained accumulation could require additional waivers before further tranches are released.