IMF Praises El Salvador’s Economy While Pressing for Bitcoin Scale-Back
The International Monetary Fund has praised El Salvador’s economic performance while continuing to push the government to reduce its involvement in Bitcoin-related activities. The comments come amid conflicting accounts over whether the Salvadoran state is still accumulating Bitcoin.
“Economic activity has exceeded expectations, supported by sustained improvements in security and investor confidence, as macroeconomic imbalances continue to be addressed,” the IMF said.
The fund also noted that El Salvador had failed to meet certain performance criteria under its economic program. “However, certain performance criteria were not met, including on the Bitcoin accumulation front, for which waivers were granted based on strong corrective measures and renewed commitments.”
The IMF further said that the Salvadoran government’s involvement in Bitcoin-related activities is being unwound. It added that “no further bitcoin accumulation is envisaged beyond the documented donations.”
Conflicting Accounts Over El Salvador’s Bitcoin Purchases
The IMF said in September that El Salvador was not buying Bitcoin, while the country’s Bitcoin Office has repeatedly stated that the government does purchase the cryptocurrency. The fund said that, at least for some time, El Salvador was not using public money to accumulate Bitcoin and had instead received Bitcoin through private donations.
Salvadoran President Nayib Bukele said in 2022 that the country would purchase one Bitcoin every day. However, it was never clear where the money for those purchases came from or whether the acquisitions were taking place.
Bukele has continued to present the government as committed to expanding its Bitcoin holdings. In 2024, he acknowledged that Salvadorans were not using Bitcoin to buy goods and services as widely as expected, but he maintained that the government was continuing to accumulate the cryptocurrency.
IMF Loan Agreement and El Salvador’s Bitcoin Strategy
El Salvador and the IMF reached a $1.4 billion loan agreement at the end of December. As part of the arrangement, the fund asked the Salvadoran government to scale back elements of its Bitcoin strategy.
El Salvador made Bitcoin legal tender in 2021 and gave the cryptocurrency to citizens through a government-backed wallet. The initiative was designed to encourage wider use of Bitcoin in the dollarized economy, but adoption for everyday purchases has not met the government’s expectations.
Bukele addressed the IMF’s assessment in a post on October 1, 2026, writing, “El Salvador’s economy continues to perform strongly” (source).
Why This Matters
The IMF’s statements highlight the tension between El Salvador’s Bitcoin policy and the conditions attached to its international financing. While the fund recognizes improvements in economic activity, security and investor confidence, it is also seeking limits on direct state involvement in Bitcoin accumulation.
The disagreement over Bitcoin purchases remains unresolved in the reported accounts: the IMF says government accumulation was not taking place, while El Salvador’s Bitcoin Office has repeatedly said that the country does buy Bitcoin. Future assessments will depend on the government’s compliance with its commitments and on how Bitcoin-related activity is documented under the loan program.
Frequently Asked Questions
What did the IMF say about El Salvador’s economy?
The IMF said economic activity had exceeded expectations, supported by improvements in security and investor confidence, while macroeconomic imbalances continued to be addressed.
What did the IMF say about El Salvador’s Bitcoin accumulation?
The IMF said El Salvador had not met certain performance criteria related to Bitcoin accumulation, granted waivers based on corrective measures and renewed commitments, and said no further accumulation was planned beyond documented donations.
Why is El Salvador’s Bitcoin policy under scrutiny?
El Salvador received a $1.4 billion IMF loan agreement after the fund asked it to scale back aspects of its Bitcoin strategy. The IMF and El Salvador’s Bitcoin Office have also provided conflicting accounts of whether the government continues to buy Bitcoin.
