IMF Clears $138M for El Salvador After Granting Waiver Linked to Bitcoin Holdings

The International Monetary Fund has approved a $138 million disbursement for El Salvador after granting a waiver related to the government's ongoing bitcoin accumulation, according to CryptoPotato. The decision follows an IMF review that took into account El Salvador's government-held bitcoin reserve, currently valued at about $666 million. By allowing the tranche to proceed, the Fund signaled that the country's bitcoin approach has not, for now, disrupted its broader financing program. Waivers are typically used to keep a borrower in good standing when specific program targets or restrictions are not fully met. In this case, the waiver tied to bitcoin activity appears to have been a key element in clearing the review and enabling the $138 million payment, which forms part of a larger financing package. El Salvador, under President Nayib Bukele, became the first country to adopt bitcoin as legal tender in 2021. The move drew sustained IMF criticism over volatility, financial stability and fiscal transparency risks. Negotiations that followed produced a lending arrangement that included limits on government bitcoin activity. The latest review suggests those frictions have not blocked continued IMF support. El Salvador has continued to build its bitcoin position gradually, presenting it as a long-term sovereign asset strategy alongside bitcoin's legal-tender status. While a reserve near $666 million remains small relative to traditional reserve assets, it carries significant symbolic weight given the country's early and high-profile embrace of bitcoin. The outcome is also being watched outside El Salvador. Other governments and sovereign funds have tracked how the IMF handles a member state that holds bitcoin directly on its balance sheet. A waiver—rather than a funding freeze or a formal finding of noncompliance—suggests the Fund may be prepared to accommodate sovereign bitcoin holdings within existing loan frameworks under current market and fiscal conditions. Market impact The IMF's action reduces near-term uncertainty around El Salvador's access to multilateral financing and lowers the risk of a disruption that could have forced abrupt changes to bitcoin holdings or fiscal policy. For crypto markets, the decision offers a reference point for how international financial institutions may adapt to state-level bitcoin ownership. It does not alter bitcoin's underlying fundamentals, but it may be viewed by investors as evidence that institutional and regulatory friction around sovereign bitcoin reserves can be managed without requiring divestment. The waiver and disbursement indicate El Salvador's bitcoin initiative can continue alongside its IMF program for this review cycle. Future reviews will test whether that flexibility holds as reserve valuations and macro conditions evolve. Frequently asked questions What did the IMF approve for El Salvador? The IMF approved a $138 million disbursement under its ongoing financing program with El Salvador after granting a waiver tied to the country's bitcoin accumulation. Why did El Salvador need a waiver related to bitcoin? El Salvador's IMF program includes conditions limiting government bitcoin activity, reflecting the Fund's long-standing concerns about volatility and fiscal risks. How large is El Salvador's current bitcoin reserve? El Salvador's government-held bitcoin reserve is valued at approximately $666 million based on accumulated holdings and current market prices. Does this mean the IMF supports bitcoin adoption? No. The waiver addresses a specific compliance issue within the loan program and is not a broader endorsement of bitcoin as legal tender. Originally reported by AltcoinGordon, written by Noah Sullivan. Republished with permission. View the original on AltcoinGordon →