IMF confirms El Salvador’s bitcoin growth was funded by private donations, not public money
The IMF has confirmed that recent growth in El Salvador's bitcoin holdings is funded by private donations rather than public funds, addressing concerns regarding the country's fiscal policy. This disclosure follows an agreement between the IMF and the Salvadoran government to improve oversight of public-sector crypto assets while continuing their 40-month Extended Fund Facility.
Why it matters
The clarification resolves a point of contention between the IMF and El Salvador, signaling a path forward for the country's controversial bitcoin adoption strategy while maintaining international financial cooperation.
The documents showed bitcoin added since the review came from private donations, the fund said. No further accumulation beyond documented donations is expected.
The disclosure offers an explanation for how El Salvador’s holdings keep growing even though the IMF’s first review called for the public sector’s bitcoin balance to remain unchanged.
The country’s official tracker has meanwhile risen to 7,764.37 BTC on after the balance jumped by more than 1,000 BTC in November and continued receiving one BTC a day.
The IMF statement did not identify the donors or say how much each contributed. President Nayib Bukele had said in March last year that the country’s bitcoin purchases would not stop .
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