The International Monetary Fund (IMF) praised El Salvador for its economic improvements but simultaneously criticized its cryptocurrency project. In a statement on Friday, the fund announced that it approved the allocation of $139 million to Central America while attempting to "reduce the state's involvement in Bitcoin-related activities." In 2021, El Salvador made Bitcoin legal tender, which drew disapproval from the IMF and other major institutions, as the country was negotiating a development loan at the time. "El Salvador's economy continues to show good results," noted the country's president, Nayib Bukele, on his Twitter on October 1, 2026.
According to the IMF, "economic activity exceeded expectations due to sustained improvements in security and investor confidence, as macroeconomic imbalances continue to be addressed." However, a number of discrepancies with established criteria were noted, including insufficient Bitcoin accumulation, although extensions were granted based on implemented corrective measures and new commitments. The IMF also reported that the state's involvement in Bitcoin-related activities in El Salvador is being phased out and that "no further Bitcoin accumulation is planned beyond recorded donations." In September, the fund stated that El Salvador would not use budgetary funds to accumulate Bitcoin for some time but would instead receive cryptocurrency from private donations.
El Salvador and the IMF reached a loan agreement of $1.4 billion at the end of December, but the fund asked the country to reduce certain aspects of its Bitcoin strategy. In 2021, the government gifted its citizens Bitcoin and launched a wallet in hopes of increasing cryptocurrency use among citizens in the dollarized country. However, in 2024, Bukele acknowledged that Salvadorans did not use cryptocurrency for purchases as expected, but still claimed that the government continues to accumulate Bitcoin.
Related articles
