El Salvador's $666 Million Bitcoin Reserve Survives IMF Review, Unlocking $138 Million

IMF clears new funding while Bitcoin restrictions hold

On October 1, the International Monetary Fund completed the second and third reviews of El Salvador's $1.4 billion loan program, unlocking a disbursement worth about $138 million. The board also granted waivers for missed performance criteria tied partly to Bitcoin accumulation after the country's authorities took corrective measures and renewed their commitments.

El Salvador currently holds about 7,794.37 Bitcoin, valued at roughly $666.1 million. Despite the waivers, the IMF confirmed that no further state-funded Bitcoin accumulation is envisaged under the program, leaving the constraint on publicly funded purchases in place.

What the review confirms and what it restricts

• The 40-month Extended Fund Facility was approved in February 2025 to support fiscal adjustment, stronger reserves, and financial-sector reforms.
• The waiver preserves financing access but keeps the ban on new government-funded Bitcoin purchases.
• Reserve balances can still rise through documented donations without signaling a restart of state buys.
• The government has transferred majority ownership and control of the state-backed Chivo wallet to a private operator, though the IMF says remaining public-sector exposure should still be fully unwound.

What the IMF wants next

The Fund also called for improvements in three areas. First, El Salvador should improve disclosure of public-sector crypto holdings. Second, the country should strengthen regulation and governance for digital-asset providers. Third, the Digital Asset Issuance Law may need amendments where necessary.

Future reviews will partly depend on whether El Salvador can document how its Bitcoin balance changes while completing the remaining Chivo unwind and transparency reforms. Any unexplained accumulation could force the government to seek new waivers before accessing further program financing.

Why this matters for the crypto space

El Salvador's position as the first country to adopt Bitcoin as legal tender drew global attention, and its Bitcoin reserve has been one of the largest held by a sovereign government. The IMF review is significant because it shows that a country can maintain a sizeable state Bitcoin reserve while remaining inside an IMF loan program, as long as certain documentation and transparency standards are met.

For other governments considering state-level crypto adoption, the review underscores that international financial institutions may allow crypto holdings but will impose strict limits on how those holdings are acquired and reported.

Sources

• CryptoSlate