IMF reveals El Salvador's Bitcoin growth from donations
El Salvador's Bitcoin accumulation now reaches 1,090 BTC, driven solely by private donations, clarifies the IMF amidst compliance scrutiny.
Bradley Hughes 2 min read
IMF clarifies El Salvador’s Bitcoin funding sources
The International Monetary Fund (IMF) has stated that El Salvador’s recent Bitcoin accumulation does not involve public funds. This statement, made following the country’s report of a $100 million Bitcoin acquisition, comes as part of a broader evaluation of compliance with an ongoing IMF financing program.
Private donations drive Bitcoin increase
According to the IMF, the documentation provided by Salvadoran authorities confirms that the increase in Bitcoin holdings, which reportedly reached 1,090 BTC in November 2025, resulted exclusively from private donations rather than government financing. This assertion aims to alleviate concerns earlier raised regarding the country’s adherence to its $1.4 billion IMF program.
Operational control of Chivo wallet shifted to private sector
In its statement, the IMF noted that majority ownership and operational control of the Chivo wallet—the government-backed Bitcoin wallet launched in 2021—has been transferred to a private operator. Despite this shift, the Salvadoran government retains a minority stake and custody responsibilities. The change addresses earlier criticisms about government overreach in the Bitcoin ecosystem.
Previous restrictions and future accumulation
In December 2024, as part of its agreement with the IMF, El Salvador committed to reducing public-sector involvement in Bitcoin. This meant that while private sector acceptance of Bitcoin became voluntary, taxes were to continue being paid in US dollars. The government was also expected to unwind its involvement with Chivo, a requirement reiterated in subsequent unfavourable assessments from the IMF.
Following the introduction of these restrictions, President Nayib Bukele made headlines by asserting that Bitcoin purchases by the government would persist despite earlier agreements. He noted at the time that El Salvador would aim to acquire at least one BTC daily.
Current Bitcoin holdings and market status
As of now, El Salvador reportedly holds approximately 7,764 BTC, equating to about $628 million at current market prices, a figure confirmed by information from the National Bitcoin Office’s official reserve tracker. This amount remains higher than previous total holdings, marking a significant position in the global Bitcoin landscape.
Considerations for Canadian investors
Canadian investors monitoring El Salvador’s approach to Bitcoin may find interest in how government and private sector interactions shape the regulatory landscape. The regulatory framework established by the Canadian Investment Regulatory Organization (CIRO) and provincial agencies such as the Ontario Securities Commission (OSC) may provide a contrasting backdrop to El Salvador’s evolving policies. Compliance to regulations including those dictated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) differs markedly from El Salvador’s recent strategy, which heavily features private sector involvement.