IMF Confirms El Salvador’s Bitcoin Holdings Are From Private Donations

The International Monetary Fund (IMF) stated that El Salvador has not used public funds for its recent bitcoin accumulation, confirming the assets were acquired through private donations.

In a report released Thursday, the IMF said Salvadoran authorities provided documentation verifying that bitcoin accumulation since the fund’s first review of its $1.4 billion loan program reflects private donations. “No further Bitcoin accumulation beyond the documented donations is expected,” the report added.

The IMF also noted that public participation in the government-sponsored Chivo wallet has been largely wound down, with majority ownership and operational control handed to a private operator. The report highlighted understandings reached on steps to modernize the legal and regulatory framework for digital assets in the country.

El Salvador made global headlines in 2021 by becoming the first nation to adopt bitcoin as legal tender. President Nayib Bukele had previously announced a policy of buying one bitcoin per day, though the funding source was unclear. The IMF and World Bank have long criticized aspects of the country’s Bitcoin law.