IMF Approves El Salvador Loan While Pressuring Nation to Scale Back Bitcoin Activities

IMF El Salvador Bitcoin — The International Monetary Fund has approved a $139 million disbursement for El Salvador while simultaneously pressuring the nation to reduce its state-led Bitcoin initiatives.

In a statement on Friday, the IMF praised El Salvador’s strong economic performance and improved security but noted that certain performance criteria, including on Bitcoin accumulation, were not met. The fund stated that “no further bitcoin accumulation is envisaged beyond the documented donations” and that involvement in Bitcoin-related activities is being unwound.

This continues a long-standing tension between the IMF and El Salvador, which made Bitcoin legal tender in 2021. The fund has repeatedly criticized the policy, even as it engaged in a $1.4 billion loan agreement with the country late last year.

The Salvadoran government, through its Bitcoin Office, has consistently stated it continues to acquire bitcoin, contradicting an IMF claim from September that the state was not using public funds for purchases and was instead relying on private donations.