IMF Says El Salvador's Recent Bitcoin Increase Came From Private Donations, Not Public Funds

The International Monetary Fund said El Salvador has provided documentation indicating that the rise in Bitcoin recorded since June 27, 2025 was not the result of government purchases financed with public money, but instead came from private donations. The IMF made the disclosure in its September 3 announcement on a staff-level agreement covering the combined second and third reviews of El Salvador's Extended Fund Facility (EFF). According to the IMF, materials submitted by the government show that Bitcoin credited to state-controlled wallets after the relevant date originated from private donations rather than fiscal resources. The IMF did not identify the donors or specify the amount of Bitcoin involved. The clarification responds to earlier outside skepticism about claims of El Salvador's "continuous purchases of Bitcoin." On-chain data can confirm that assets reached a given address, but it cannot determine whether inflows came from market buys, internal transfers, or external donations. If the agreement is approved by the IMF Executive Board and El Salvador completes the agreed prior actions, the country would become eligible for about $140 million in financing, equivalent to 101.96 million SDRs. The IMF approved El Salvador's 40-month EFF in February 2025, with total financing of roughly $1.4 billion. The statement also said El Salvador has sharply reduced its direct role in the Chivo digital wallet, transferring majority ownership and operational control to an unnamed private operator. The government retains a minority stake and continues to be responsible for custody of client assets. Under the original EFF conditions, El Salvador shifted private-sector Bitcoin use to a voluntary basis, kept taxes payable in U.S. dollars, and limited public-sector participation in Bitcoin-related activities. The IMF added that both sides share an understanding that no additional Bitcoin holdings will be acquired beyond the private donations already recorded. They also agreed to move forward with adjustments to the legal, regulatory and supervisory framework for digital assets, and to strengthen governance and risk controls around any cryptocurrency holdings in the public sector.