Bitcoin Possessions of El Salvador Maintained at Current Levels, IMF Says
The International Monetary Fund (IMF) has affirmed El Salvador's compliance with its loan agreement terms, following the publication of its first review under the country's arrangement. As per the IMF's May 27 press release, El Salvador has shown strong performance in all areas, including the Bitcoin sector.
The IMF statement specifies that efforts will continue to maintain the total Bitcoin holding in government-owned wallets, unmoved and in accordance with the agreement. By the end of July, the public sector's participation in the Chivo wallet is slated for termination.
This review effectively endorses El Salvador's previously disclosed Bitcoin holdings, as previously reported in March. The IMF had conducted an audit of the bitcoin holdings prior to the agreement and was already aware of the public sector's full Bitcoin holdings.
El Salvador's latest Bitcoin balance of 6,189.18 BTC is publicly accessible via its promoted treasury address. Although new acquisitions might still occur, the current amount held by the state remains in line with the agreement, as stated in the IMF statement.
The $1.4 billion arrangement, passed by the IMF Executive Board on February 26, includes an initial disbursement of $120 million. The continuation of funds disbursement will require the approval of the new update.
The reforms outlined in the Bitcoin Law approved in 2021 and modified in early 2025 include the removal of Bitcoin's mandatory legal tender status, full disclosure of government's and public sector's Bitcoin holdings, and the winding-down of the state-run Chivo Wallet. These changes are essential for unlocking future financing from other institutions like the World Bank, potentially totaling around $3.5 billion.
Although El Salvador has continued to amass Bitcoin, the IMF's focus remains on transparency, regulatory rollback, and limiting state intervention, as reflected by the changes to the Bitcoin Law and the discontinuation of the state-led project. The agreement between El Salvador and the IMF exists as a delicate balance of Bitcoin acquisition and adherence to the IMF's requirements.
- The industry, finance, and technology sectors are closely watching El Salvador's compliance with the IMF's requirements, given its significant investments in Bitcoin.
- The banking-and-insurance sector is anticipating the termination of the public sector's participation in the Chivo wallet by the end of July, as specified in the IMF's statement.
- The IMF's focus on transparency, regulatory rollback, and limiting state intervention in the Bitcoin sector could potentially open opportunities for private businesses to engage in the Bitcoin industry in El Salvador.
