IMF Vows to Rein In El Salvador’s Bitcoin Stash Under Loan Conditions

El Salvador is once again facing international scrutiny for its continued embrace of Bitcoin.

On Tuesday, the International Monetary Fund said it had reached a staff-level agreement with the Salvadoran government as part of the first review of a $1.4b extended loan program.

While praising the country’s progress on fiscal reforms and macroeconomic stability, the IMF said it would work to “ensure” that the total amount of Bitcoin held by the government remains unchanged.

The announcement, which follows months of negotiations, reflects a delicate balancing act between supporting El Salvador’s economic ambitions and placing limits on its headline-grabbing Bitcoin policy. The IMF noted that while risks from the country’s crypto adoption have diminished, maintaining stability requires tighter controls.

As part of the terms, El Salvador also committed to withdrawing public sector involvement in the Chivo wallet, its state-run Bitcoin app, by the end of July.

The update follows comments from economy minister Maria Luisa Hayem, who reiterated in April that Bitcoin remains a government priority. Speaking at the Web Summit in Rio de Janeiro, she confirmed that the country continues to accumulate Bitcoin despite the IMF program’s guidelines.

Since striking the deal in Dec. 2024, El Salvador has added at least 20 Bitcoin to its treasury.

As of May 2025, the country holds around 6,190 BTC, worth an estimated $675m with last BTC purchase made on 28 May. With Bitcoin prices soaring this year, the nation sits on unrealized gains of over $350m, according to government data.

El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021, a move that drew sharp criticism from multilateral lenders including the IMF. Talks over financial support stalled for years as the fund urged the country to reconsider its crypto policy. But the recent agreement signals a more pragmatic tone, with the IMF allowing limited crypto exposure while insisting on broader economic discipline.

To secure the next $120m tranche of funding, the Salvadoran government has agreed to strengthen fiscal consolidation, raise bank liquidity requirements and implement civil service and pension reforms. The IMF said the deal remains subject to executive board approval and hinges on the country meeting prior agreed actions.

While the Bitcoin cap may frustrate crypto advocates, the Salvadoran administration appears determined to continue its digital asset experiment within the limits of international oversight.

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