The International Monetary Fund has confirmed that El Salvador funded its recent Bitcoin acquisitions through private donations rather than public money. The disclosure came in a September 3 announcement concerning the country's loan program.

IMF staff and Salvadoran officials have reached a staff-level agreement on the combined second and third reviews of El Salvador's Extended Fund Facility. The agreement still requires approval from the IMF's Executive Board.

According to the Fund, El Salvador provided documentation showing that Bitcoin added to government wallets since June 27, 2025 came from private donors. No public resources were used for the purchases, the IMF said.

The disclosure addresses questions that arose after wallets tied to El Salvador's Strategic Bitcoin Reserve appeared to grow. Some observers had asked whether the government continued buying Bitcoin despite its commitments to the IMF. El Salvador made Bitcoin legal tender in 2021, the first country to do so, and the Strategic Bitcoin Reserve was formalized by the legislature in January 2025, establishing a framework for the state to accumulate and hold Bitcoin. That policy stance has been a persistent point of friction in the country's dealings with the IMF, which has long warned about the fiscal risks of government exposure to cryptocurrency.

How the Bitcoin Donations Were Verified

Blockchain records can show coins moving into a wallet, but they do not explain where the coins originated. They also cannot indicate whether coins were bought, donated, or moved between government accounts.

In July 2025, the IMF stated that the total Bitcoin held by the government had not changed, explaining that some reported increases actually resulted from moving coins between different state-controlled wallets.

The new documentation adds another layer of explanation, stating that any accumulation after the first review came from private gifts rather than government purchases. The IMF also said it reached an understanding with El Salvador that no further Bitcoin buildup is expected beyond the donations already reported.

What the Loan Agreement Means for El Salvador

If the IMF's Executive Board approves the reviews, El Salvador could receive close to $140 million, equivalent to about 101.96 million Special Drawing Rights. The country has already received 172.32 million Special Drawing Rights under the program.

The IMF approved the 40-month loan arrangement in February 2025, with total access of about $1.4 billion. For El Salvador, the program carries broader significance: the financing supports the government's effort to lift growth while managing one of the region's heavier public debt burdens, and maintaining access depends on keeping the agreed policy commitments, including those covering Bitcoin.

The Fund said El Salvador's economy has performed better than expected, projecting economic growth of 4.5 percent in 2026, supported by investment, spending, remittances, tourism, and money flowing into the country. IMF staff also called for continued spending discipline, urging the government to keep working toward lowering public debt to 80 percent of the size of the economy by 2030.

As part of the program, El Salvador has scaled back its role in the Chivo wallet, the state-backed digital wallet launched alongside the 2021 legal tender law. Majority ownership and daily operations have shifted to a private operator whose name has not been made public, while the government retained a minority stake and remained responsible for safeguarding customer funds. The IMF said work continues to make Bitcoin holdings across various wallets easier to track.

The original loan terms made Bitcoin acceptance optional for businesses, required taxes to be paid in U.S. dollars, and limited the extent of government participation in Bitcoin activity. Both sides also agreed to update El Salvador's rules for digital assets, with the plan including stronger oversight and risk controls for any Bitcoin held by the public sector.

The IMF's Executive Board has not yet voted on the reviews. Until it does, and until El Salvador completes the required steps, the additional $140 million will remain unavailable.

Source: IMF press release | Blockonomi