IMF says El Salvador bitcoin increase came from private donations, not government funds

El Salvador’s increased bitcoin holdings after entering an International Monetary Fund (IMF) financial support programme were obtained through private donations rather than government funds, it was confirmed.

On Sept. 4, Cointelegraph reported that the IMF said it had verified data submitted by Salvadoran authorities and found that bitcoin holdings that increased after the first review of the financial support programme in June last year were due to private donations. It said there were no additional purchases using government resources.

The IMF said majority ownership and operational control of the government e-wallet Chivo were also transferred to a private operator. The El Salvador government retains a minority stake and responsibility for custody of customer assets. The IMF said it expected there would be no further bitcoin accumulation going forward, excluding confirmed donations.

The announcement is an explanation for controversy that resurfaced after El Salvador said in November last year it had secured 1,090 BTC, worth about $100 million at the time, or about 13.49 billion won. In the market, questions were raised over whether the increase in bitcoin holdings violated conditions of the IMF’s Extended Fund Facility (EFF) programme worth $1.4 billion, or about 1.89 trillion won.