BITCOIN | El Salvador Unlocks IMF Funds Pegged to Limiting Bitcoin Accumulation and Exposure

El Salvador has secured an immediate $138 million disbursement from the International Monetary Fund after the lender granted waivers for missed performance criteria linked to the country’s Bitcoin accumulation.

The IMF Executive Board completed the second and third reviews of El Salvador’s 40-month Extended Fund Facility on Thursday, allowing the funds to be released under the country’s $1.4 billion financing programme.

The Fund said some performance criteria had not been met, including those relating to Bitcoin accumulation, but granted waivers based on what it described as “strong corrective measures and renewed commitments.”

El Salvador has been required under the IMF programme to limit the state’s exposure to Bitcoin and prevent public resources from being used to accumulate the cryptocurrency.

REGULATION | El Salvador Slows Down Bitcoin Regulations Following Pressure from IMF

The IMF said documentation provided by Salvadoran authorities showed that Bitcoin accumulated since the programme’s first review came from private donations and did not involve public resources.

No further Bitcoin accumulation is expected beyond documented donations.

The Fund said El Salvador had also made progress on financial-sector reforms, fiscal transparency, and anti-money laundering and counter-terrorist financing measures.