El Salvador has provided documentation to the International Monetary Fund indicating that Bitcoin added to government-controlled holdings since June 27, 2025, came through private donations rather than public funds. The disclosure addresses questions surrounding the country’s Bitcoin reserves as part of its latest IMF financing review.
- The IMF says El Salvador documented private donations as the source of Bitcoin accumulated after June 27, 2025.
- According to the Fund, no public money was used for the documented additions.
- El Salvador could receive another $140 million if the IMF Executive Board approves the latest review and required conditions are met.
- Government involvement in the Chivo wallet has been reduced, with operational control transferred to a private entity.
- The IMF expects no additional Bitcoin accumulation beyond the donations already documented.
Private Donations Explain Recent Bitcoin Increases
The information was included in the IMF’s Sept. 3 announcement covering a preliminary staff-level agreement with El Salvador on the combined second and third reviews of its Extended Fund Facility.
According to the IMF, Salvadoran officials provided documentation showing that Bitcoin added to government-associated holdings after June 27, 2025, was received through private donations.
The Fund said those additions were not financed with public resources. However, the announcement did not identify the donors, disclose how much Bitcoin was donated or provide details about the individual transactions.
The clarification is significant because blockchain data can show Bitcoin entering government-controlled addresses without revealing the economic reason behind each transfer. An increase in a state-associated wallet could result from a purchase, a transfer between government addresses, consolidation of holdings or an external donation.
The latest IMF statement therefore provides additional context for changes previously observed in addresses connected to El Salvador’s Bitcoin reserve.
New IMF Agreement Could Unlock $140 Million
The Bitcoin clarification forms part of a broader agreement between IMF staff and Salvadoran authorities.
The proposed arrangement still requires approval from the IMF Executive Board, along with completion of several agreed prior actions. Once those conditions are satisfied, El Salvador could receive approximately $140 million, equivalent to SDR 101.96 million.
The IMF originally approved El Salvador’s 40-month Extended Fund Facility in February 2025, providing access to approximately $1.4 billion.
The country has already received SDR 172.32 million under the program.
The latest staff-level agreement remains preliminary until the Executive Board completes its review and authorizes the additional funding.
The IMF also reported that El Salvador’s economic performance had been stronger than previously anticipated. Its staff forecast 4.5% real GDP growth for 2026, supported by investment, consumer spending, remittances, tourism and capital inflows.
At the same time, the Fund continues to call for fiscal consolidation, stronger institutional governance and measures aimed at reducing public debt toward approximately 80% of GDP by 2030.
Chivo Moves Further Into Private Hands
The latest agreement also reflects a reduced role for the Salvadoran government in Chivo, the digital wallet launched as part of the country’s Bitcoin strategy.
According to the IMF, majority ownership and operational control of Chivo have shifted to an unidentified private operator. The government continues to maintain a minority interest and remains responsible for custody-related obligations involving customer assets.
Authorities are also working to improve transparency around Bitcoin held across various government-controlled wallets.
The changes represent a broader move away from direct government involvement in operating crypto-related services and were incorporated into the wider discussions surrounding the IMF program.
IMF Expects No Additional Bitcoin Accumulation
The IMF said Salvadoran authorities and its staff reached an understanding that no further Bitcoin accumulation beyond the documented private donations is expected.
This wording is important because it describes an expectation under the staff-level agreement rather than announcing a new standalone prohibition on Bitcoin purchases.
The latest arrangement also calls for improvements to El Salvador’s legal and regulatory framework covering digital assets. Areas under consideration include stronger governance procedures and better risk-management controls for crypto assets held by public-sector entities.
The IMF’s Executive Board must now consider the staff report. Until the Board approves the latest reviews and El Salvador completes the required prior actions, the additional $140 million disbursement remains pending.
For now, the IMF’s disclosure provides a clearer explanation for the Bitcoin added to El Salvador’s government-linked holdings since June 2025: the documented accumulation was attributed to private donations rather than taxpayer-funded purchases.
