IMF Statement Highlights Changes to El Salvador’s Bitcoin Policy

By Eproint

In a staff statement released on December 22, 2025, the International Monetary Fund (IMF) provided an update on discussions with El Salvador regarding its economic program under a 40-month Extended Fund Facility (EFF). While the statement notes improvements in macroeconomic indicators, it also reiterates commitments related to the country’s Bitcoin policy, including the future of the state-run Chivo Wallet.

Macroeconomic Context

According to the IMF, El Salvador’s economy has shown stronger-than-expected performance, with growth projected at around 4% in 2025. The Fund points to improved investor confidence, sustained remittance inflows and progress in fiscal consolidation. The approved 2026 budget is described as consistent with deficit-reduction targets while preserving social spending.

The statement also highlights advances in financial sector regulation, including steps toward Basel III implementation and reforms to strengthen anti-money-laundering and counter-terrorism financing controls.

Bitcoin Policy and Structural Commitments

Alongside fiscal and financial reforms, the IMF places particular emphasis on El Salvador’s engagement with Bitcoin. Since the adoption of Bitcoin as legal tender in 2021, the issue has remained a recurring concern in IMF assessments, especially in relation to fiscal exposure, governance and financial stability risks.

Within this framework, the IMF notes that negotiations for the sale of the government-owned Chivo digital wallet are well advanced. Chivo was launched to support Bitcoin adoption and digital payments, but its operation by the public sector has been identified as a source of potential fiscal and operational risk. No buyer has been publicly identified, and any transaction would involve a private sector operator or an alternative restructuring of the platform, rather than a transfer to an international financial institution.

Reducing Public Sector Exposure

The potential divestment of Chivo forms part of a broader effort to scale back direct government involvement in Bitcoin-related activities. Under commitments linked to the IMF-supported program, El Salvador has agreed to limit public sector exposure to crypto assets and to shift related services away from state control.

From the IMF’s perspective, these measures are intended to contain risks stemming from price volatility, contingent liabilities and governance challenges, while supporting macroeconomic stability and financial integrity.