IMF Says Private Donations, Not Public Funds, Drove El Salvador Bitcoin Growth

The International Monetary Fund (IMF) confirmed that the increase in El Salvador’s Bitcoin reserve since its first program review was funded by private donations, not by public resources.

IMF Review Findings

During a staff‑level agreement on the country’s combined second and third program reviews, the IMF verified documentation showing that all Bitcoin added to the Strategic Bitcoin Reserve Fund after the first review originated from private donors. The Fund noted that public‑sector Bitcoin holdings had not changed since the program began.

Program Context

El Salvador entered a 40‑month Extended Fund Facility (EFF) in February 2025, with total access of roughly $1.4 billion, equivalent to 360 % of its quota. Bitcoin has been a recurring topic in the program’s discussions. Earlier in the year, a decline in Bitcoin prices reduced the market value of the country’s holdings, and credit default swaps rose to a five‑month high.

Future Accumulation Outlook

The IMF stated that no further Bitcoin accumulation is expected beyond the documented private donations.

Regulatory and Operational Changes

Both the IMF and El Salvador agreed to modernize the legal, regulatory, and supervisory framework for digital assets. Oversight and risk controls on publicly held crypto will be tightened. The Chivo e‑wallet’s public involvement has been largely unwound, with a private operator assuming majority ownership and day‑to‑day control, while the state retains a small stake and continues to safeguard customer assets. Work is also underway to improve transparency of Bitcoin holdings across various wallets.

Economic Projections

Mission Chief Mr. Torres projected real GDP growth of 4.5 % in 2026, driven by investment, consumption, remittances, and tourism. The non‑financial public‑sector primary surplus is expected to rise from 2.9 % of GDP this year to 3.7 % in 2027.