El Salvador used no public funds for Bitcoin, IMF says
El Salvador has provided documentation showing that its Bitcoin accumulation since June 27, 2025, came from private donations rather than public resources, according to the International Monetary Fund.
- El Salvador documented that Bitcoin received after June 2025 came from private donations, IMF says.
- No public resources funded the documented accumulation, according to the IMF’s preliminary staff-level agreement announcement.
- El Salvador could access approximately $140 million after Executive Board approval and completing prior actions.
- Chivo’s majority ownership and operations moved privately, while government retained custody responsibilities and minority ownership.
- The IMF expects no additional Bitcoin accumulation beyond the private donations already documented by authorities.
The disclosure appeared in a Sept. 3 IMF statement announcing a staff-level agreement covering the combined second and third reviews of the country’s Extended Fund Facility.
The IMF said it also reached an understanding with Salvadoran authorities that no further Bitcoin accumulation beyond the documented donations is expected. The announcement does not identify the donors or specify the amount of Bitcoin received privately.
El Salvador Bitcoin records address funding questions
The latest disclosure helps explain apparent increases in wallets associated with El Salvador’s Strategic Bitcoin Reserve. Those increases had raised questions about whether the government was continuing to purchase Bitcoin despite its IMF commitments.
The IMF said Salvadoran authorities supplied documentation verifying that the accumulation recorded after the first EFF review reflected private donations. It stated that no public money financed those additions.
The distinction matters because blockchain records can show assets entering a wallet but do not automatically identify whether they came from purchases, internal transfers or donations. Crypto.news previously examined how government wallet movements can create misleading impressions of sovereign Bitcoin purchases.
In July 2025, IMF documentation said the total amount held across government-controlled wallets remained unchanged. It explained that some reported increases reflected Bitcoin consolidation among different state-controlled addresses.
Earlier crypto.news reporting also found that daily Bitcoin purchase claims conflicted with IMF program disclosures. The new documentation introduces private donations as the source of accumulation recorded after June 27, 2025.
IMF agreement could release another $140 million
IMF staff and Salvadoran authorities reached their agreement following the combined second and third EFF reviews. The arrangement remains subject to approval by the IMF Executive Board and completion of agreed prior actions.
If those requirements are met, El Salvador would receive approximately $140 million, equivalent to SDR 101.96 million. The IMF approved the 40-month EFF in February 2025 with total access of approximately $1.4 billion.
The country has received SDR 172.32 million under the program so far. The IMF described the latest agreement as preliminary because its Executive Board has not approved the reviews or authorized the additional disbursement.
The Fund said El Salvador’s economic activity had exceeded earlier expectations. It projects real gross domestic product growth of 4.5% in 2026, supported by investment, consumption, remittances, tourism and capital inflows.
That forecast remains subject to economic conditions. IMF staff also called for continued fiscal consolidation, stronger governance and a reduction in public debt toward 80% of GDP by 2030.
Chivo wallet moves under private control
El Salvador has substantially reduced public participation in Chivo, the electronic wallet introduced alongside its Bitcoin policy. Majority ownership and operational control have been transferred to an unidentified private operator.
The government retained a minority stake and custodial responsibilities for customer assets. The IMF said authorities were also working to improve transparency surrounding Bitcoin held across different wallets.
The transfer follows prolonged discussions over reducing the government’s direct role in crypto services. As crypto.news previously reported, negotiations over Chivo formed part of the wider IMF funding arrangement.
Under the original EFF conditions, El Salvador made private-sector Bitcoin acceptance voluntary, required taxes to be paid in U.S. dollars and limited public-sector participation in Bitcoin-related activities.
No further Bitcoin accumulation is expected
The IMF said it reached an understanding that El Salvador would not accumulate more Bitcoin beyond the documented private donations. The wording describes an expectation under the staff-level agreement rather than an independently enforceable ban announced by the Fund.
“Going forward, no further Bitcoin accumulation beyond the documented donations is expected,” IMF staff said.
The two sides also agreed to pursue changes to El Salvador’s legal, regulatory and supervisory framework for digital assets. Planned work includes strengthening governance and risk controls for crypto assets held by the public sector.
The Executive Board must now consider the staff report. Until it approves the reviews and El Salvador completes the required actions, the additional $140 million remains unavailable.
