IMF Praises El Salvador — But Still Tries To Scale Back Its Bitcoin Project

According to Bitcoin Magazine, the International Monetary Fund has approved a $139 million disbursement to El Salvador while simultaneously attempting to reduce the nation's state involvement in Bitcoin-related activities. In a statement released on a Friday, the IMF praised El Salvador for economic improvements, stating that economic activity has exceeded expectations due to sustained improvements in security and investor confidence.

However, the IMF scolded the country for its ongoing Bitcoin experiment. The agency noted that certain performance criteria regarding Bitcoin accumulation were not met, resulting in granted waivers following corrective measures and renewed commitments. The IMF reported that no further Bitcoin accumulation is envisaged beyond documented donations, and state involvement is being unwound.

El Salvador previously made Bitcoin legal tender in 2021 and entered a $1.4 billion loan agreement with the IMF at the end of December. While the IMF stated in September that El Salvador was not using public funds to accumulate Bitcoin but had received private donations, the country's Bitcoin Office previously maintained that it does buy the cryptocurrency.