IMF Approves $138M for El Salvador After Bitcoin Accumulation Waiver

While El Salvador remains one of the most closely watched countries for its Bitcoin strategy, the IMF agreement calls for less direct state involvement in crypto assets. The International Monetary Fund has approved a disbursement worth SDR 101.96 million ($138 million) for El Salvador after granting the government a waiver for its failure to meet a condition related to Bitcoin accumulation. The IMF Executive Board completed the second and third reviews of El Salvador’s Extended Fund Facility program on October 1. Limits for Bitcoin Accumulation The IMF said El Salvador’s economy has performed better than expected, helped by improved security and stronger investor confidence. The country has also made progress in reducing fiscal imbalances. Its reserve and liquidity buffers have strengthened, while fiscal consolidation has broadly stayed on track. However, some program conditions were not met. One of them involved the government’s Bitcoin accumulation. The IMF granted waivers based on “corrective measures and renewed commitments” from the Salvadoran authorities. Under the latest program commitments, El Salvador is not expected to accumulate more Bitcoin beyond documented donations. ...