IMF Approves $138 Million for El Salvador, Seeks Bitcoin Limits
The disbursement follows reviews of the country’s 40-month financing arrangement. El Salvador has committed to halt new Bitcoin purchases except for recorded donations.
The International Monetary Fund approved about $138 million for El Salvador after reviewing the country’s financing program, while pressing the government to further limit its role in Bitcoin (BTC) activity.
The disbursement falls under a $1.4 billion financing arrangement lasting 40 months. The IMF completed its second and third reviews and granted waivers for some performance targets that El Salvador missed, citing corrective measures and renewed commitments.
El Salvador has committed to continue reducing state involvement in Bitcoin-related activity and to make no additional Bitcoin purchases, apart from donations already recorded. The country also plans to strengthen crypto asset regulation and governance, and improve transparency around crypto holdings in the public sector.
The government has transferred majority ownership and operational control of its Chivo Bitcoin wallet to a private operator. The IMF’s latest review ties continued program support to reduced state participation and stronger oversight of crypto assets.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.