Bitcoin remains one of the most closely watched parts of the agreement. The IMF said no further accumulation is expected beyond documented private donations, while El Salvador is also reducing the government’s role in the Chivo wallet and working toward greater transparency around public-sector crypto holdings.
Why Did the IMF Approve Funding Despite the Bitcoin Miss?
The IMF’s decision separates a breach of a program target from a broader breakdown of the financing arrangement. While certain performance criteria were missed, the lender said El Salvador had strengthened reserve and liquidity buffers and advanced reforms covering the financial sector, fiscal transparency and anti-money-laundering and counter-terrorist-financing controls.
The Bitcoin issue was handled through waivers rather than suspension of the program. The IMF’s position is that subsequent increases in the country’s reported Bitcoin holdings were not funded with public resources.
FinanceFeeds reported in September that the IMF attributed Bitcoin accumulation since June 2025 to documented private donations. That distinction matters because the program’s restrictions are aimed primarily at limiting additional fiscal exposure to Bitcoin.
Investor Takeaway
The waiver indicates that the IMF currently views the Bitcoin breach as manageable within the wider program rather than grounds to stop financing. For sovereign creditors, the more important test will be whether El Salvador follows through on the corrective measures attached to the reviews.
How Did El Salvador’s Bitcoin Holdings Keep Rising?
The source of the additional Bitcoin had become increasingly important after the country’s publicly reported holdings continued climbing despite its IMF commitments.
That tension became particularly visible in November 2025, when the government described an addition of roughly 1,090 BTC as a purchase worth around $100 million. FinanceFeeds reported on the large increase at the time, which renewed questions over how the activity fitted with the IMF agreement.
The IMF’s subsequent assessment changed the interpretation of those increases. Documentation supplied by Salvadoran authorities showed that accumulation since the first program review reflected private donations rather than additional Bitcoin purchases financed with government resources.
The clarification also follows earlier uncertainty over the government’s daily accumulation claims. FinanceFeeds previously reported that IMF documentation indicated public Bitcoin purchases had stopped, despite continuing changes in reported wallet balances.
Investor Takeaway
The distinction between donated Bitcoin and publicly funded purchases is central to assessing compliance. Donations can increase reported holdings without creating the same direct fiscal cost, but they still leave questions around custody, valuation, disclosure and ultimate government control.
What Is Changing With Chivo and Government Crypto Exposure?
The IMF also confirmed that majority ownership and operational control of Chivo, the wallet created during El Salvador’s initial Bitcoin rollout, have been transferred to a private operator. The government retains a minority interest and custodial responsibilities, although the IMF wants the remaining public-sector exposure fully unwound.
That process represents a material retreat from the state’s original role in building Bitcoin payment infrastructure. FinanceFeeds previously examined how El Salvador’s IMF agreement pushed the government toward reducing its involvement in Chivo and limiting public-sector Bitcoin activity.
The IMF is also seeking stronger regulation and supervision of crypto-asset providers, improved governance of public-sector crypto holdings and amendments to the country’s Digital Asset Issuance Law.
Investor Takeaway
The $138 million release reduces immediate financing uncertainty, but Bitcoin remains a continuing program condition rather than a settled issue. Future reviews will test whether donations stop adding to public holdings, Chivo’s remaining government exposure is removed and crypto assets become more transparent on the sovereign balance sheet.
What Matters for El Salvador’s Next IMF Reviews?
Bitcoin is only one component of the economic program. The IMF continues to press for fiscal consolidation, higher primary surpluses, stronger government liquidity buffers and delayed pension and civil-service reforms.
For investors in Salvadoran sovereign risk, continued access to IMF funding will depend on execution across those areas as well as compliance with the revised Bitcoin commitments. The latest waiver keeps the program on track, but it also places greater weight on the government’s promise that no further Bitcoin accumulation will occur beyond the documented donations.
