The International Monetary Fund said El Salvador has documented that Bitcoin acquired since the first review of its IMF-supported program came from private donations rather than state money. The update came as IMF staff and Salvadoran authorities reached a staff-level agreement that includes further limits on public-sector crypto activity and new transparency commitments.

The Fund also said El Salvador has reduced the state’s direct role in Chivo, the government-linked e-wallet introduced during the country’s Bitcoin push. Majority ownership and operational control have been transferred to a private operator, while the government keeps a minority stake and remains responsible for holding customer assets.

IMF outlines changes to Bitcoin policy

According to the IMF, the agreement with Salvadoran authorities includes measures to strengthen governance and risk management for crypto assets held by the public sector. It also calls for steps to improve transparency around the country’s Bitcoin holdings across different wallets.

The Fund said no public funds were used for recent Bitcoin purchases. It added that no further Bitcoin accumulation is expected beyond documented donations, framing the country’s latest acquisitions as externally sourced rather than financed by the government budget.

Chivo’s role shifts toward private control

A central part of the update concerns Chivo, the e-wallet closely associated with El Salvador’s earlier Bitcoin strategy. The IMF said public participation in the platform has been significantly reduced.

Under the arrangement described by the Fund, a private operator now holds majority ownership and operational control of Chivo. The Salvadoran government retains only a minority stake, although it still has responsibility for safeguarding customer assets held through the system.

Program review comes amid stronger economic performance

The IMF’s statement arrived alongside a more positive assessment of El Salvador’s near-term economy. Real GDP growth for 2025 is projected at 4.5%, which the Fund said is stronger than previously expected.

That performance has been supported by investment, consumer spending, remittances, tourism and capital inflows. The IMF also pointed to improved security and stronger investor confidence, while saying the government’s economic policies have helped reinforce fiscal and external buffers.

Background and the next confirmed step

El Salvador was the first country to adopt Bitcoin as legal tender, a policy that has remained a recurring source of IMF concern. During negotiations tied to the IMF program, the country agreed to curb public-sector involvement in Bitcoin, make private-sector acceptance voluntary and scale back parts of its broader crypto framework.

The latest staff-level agreement continues that direction. Alongside tighter controls on public-sector crypto exposure, the IMF said El Salvador plans to update its digital-asset legal, regulatory and supervisory framework. Separately, the National Bitcoin Office’s reserve tracker shows about 7,764 BTC, valued at roughly $630 million at current prices, though the Fund’s latest position is that any additional accumulation should not go beyond documented donations.

Source: cryptopotato.com