IMF Approves $138M for El Salvador Despite Bitcoin Policy Breach
- The IMF approved a $138 million disbursement to El Salvador, waiving violations related to its growing Bitcoin reserves.
- El Salvador increased its Bitcoin reserve to 7,792 BTC through private donations, challenging IMF regulations.
- The Chivo wallet’s privatization was acknowledged by the IMF as a corrective action to reduce state involvement in cryptocurrency.
- IMF praised El Salvador’s economic performance and fiscal consolidation efforts, despite unmet criteria on Bitcoin accumulation.
- Funding for the Bitcoin reserve came from an undisclosed private donor, with no public funds used.
The International Monetary Fund (IMF) has granted El Salvador a $138 million payout after the country breached rules regarding its engagement with Bitcoin activities. The waiver was issued due to strong corrective measures and commitments made by El Salvador, including reducing direct state ties with crypto through privatizing the Chivo wallet.
Despite not meeting certain performance criteria related to Bitcoin accumulation, El Salvador’s economic activity exceeded expectations according to the IMF, leading to the approval of the payout. Source
