The International Monetary Fund (IMF) has acknowledged recent improvements in El Salvador’s economy, while simultaneously urging the nation to reconsider its ongoing Bitcoin initiative.
In a statement released on Friday, the IMF confirmed its approval of a $139 million disbursement to the Central American nation, emphasizing the necessity to “reduce the state’s involvement in Bitcoin-related activities.”
El Salvador implemented Bitcoin as legal tender in 2021, a decision that drew criticism from the IMF and various other international institutions, especially during the country’s negotiations for a development loan with the agency.
“El Salvador’s economy continues to perform strongly” https://t.co/Rvaerha9QA
— Nayib Bukele (@nayibbukele) October 1, 2026
In a statement issued in September, the IMF indicated that El Salvador was not engaged in the purchase of Bitcoin; however, the country’s Bitcoin Office has consistently asserted that it actively acquires the cryptocurrency.
The IMF remarked, “Economic activity has exceeded expectations, supported by sustained improvements in security and investor confidence, as macroeconomic imbalances continue to be addressed.”
However, the organization continued, “certain performance criteria were not met, including those related to Bitcoin accumulation, for which waivers were granted based on strong corrective measures and renewed commitments.”
Furthermore, the IMF indicated that the Salvadoran government’s engagement in Bitcoin-related activities is being curtailed, stating that “no further bitcoin accumulation is envisaged beyond the documented donations.”
In 2022, President Nayib Bukele announced that the nation would procure one Bitcoin daily; however, the source of funds for these purchases remained unclear, and it was uncertain whether these acquisitions were actually occurring.
The IMF clarified in September that El Salvador was, at least temporarily, not utilizing public funds to accumulate Bitcoin, instead relying on Bitcoin received through private donations.
At the end of December, El Salvador and the IMF established a $1.4 billion loan agreement, during which the fund urged the country to scale back certain components of its Bitcoin strategy.
In 2021, the Salvadoran government provided its citizens with Bitcoin and introduced a digital wallet, hoping to increase adoption of the cryptocurrency within the dollarized nation.
In 2024, President Bukele acknowledged that Salvadorans were not using the cryptocurrency for everyday purchases as anticipated, yet continued to assert that the government was consistently accumulating Bitcoin.
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