IMF: El Salvador has pledged not to increase its Bitcoin holdings with public funds, and the Chivo wallet has essentially withdrawn from public participation

The International Monetary Fund (IMF) announced that it has reached a staff-level agreement with the authorities of El Salvador on the second and third combined reviews under the Extended Fund Facility arrangement. If approved by the IMF Executive Board, El Salvador will receive approximately $140 million (101.96 million SDR).

Regarding Bitcoin-related arrangements, the IMF confirmed several key facts: the Chivo electronic wallet has essentially withdrawn from public participation, with majority ownership and operational control transferred to private operators; the increase in Bitcoin holdings since the first review has been verified as coming from private donations, with no public resources utilized; El Salvador has committed that there will be no further increases in Bitcoin holdings beyond the recorded private donations. The two parties also reached an understanding on modernizing the legal, regulatory, and supervisory framework for digital assets, as well as strengthening governance and risk management arrangements for public sector cryptocurrency holdings.