El Salvador Used Private Donations for Bitcoin, IMF Says

IMF confirms El Salvador’s Bitcoin bought with private gifts

The International Monetary Fund said on Thursday that El Salvador has not used public money to buy Bitcoin since its last loan review. Instead, the country received Bitcoin through private donations, according to government documentation provided to the IMF.

The fund added that no further accumulation of Bitcoin beyond these documented donations is expected going forward.

Key details from the report

• El Salvador has not spent taxpayer funds on Bitcoin since the first loan review.
• All recent Bitcoin holdings come from private donations, not state resources.
• Leadership and control of the government’s Chivo wallet have been handed to a private operator.
• Agreements were reached to modernize digital asset laws and improve how the government manages crypto.

What the IMF stated

“Documentation has been provided verifying that Bitcoin accumulation since the first review reflects private donations and that no public resources were used,” the IMF release said.

The report noted that understandings were reached on steps to strengthen governance and risk management for public-sector crypto holdings. The IMF thanked Salvadoran authorities for what it called “constructive discussions and excellent collaboration.”

Background on El Salvador’s Bitcoin policy

El Salvador made Bitcoin legal tender in 2021, becoming the first country to do so. President Nayib Bukele later said the nation would buy one Bitcoin per day, but it was unclear where the funding came from or whether purchases actually happened.

President Bukele admitted in 2024 that most citizens were not using Bitcoin for everyday purchases, though he continued to claim the government was still acquiring the cryptocurrency.

El Salvador launched the Chivo wallet in 2021 to encourage Bitcoin use. The IMF and World Bank have previously criticized Bukele’s Bitcoin law, which required businesses to accept cryptocurrency if they had the technology to do so.

The IMF provided a $1.4 billion loan at the end of December and asked El Salvador to scale back certain parts of its Bitcoin strategy.

Why this matters

The clarification addresses long-standing concerns about whether El Salvador was risking public money on a volatile cryptocurrency. By confirming that donations funded Bitcoin purchases, the IMF review removes a key financial objection that had complicated the loan program.

What happens next

No additional Bitcoin accumulation is expected beyond the documented donations. The government will also move to update its legal and regulatory framework for digital assets and improve oversight of its crypto holdings.

Sources

• Bitcoin Magazine