El Salvador Agrees to End Public Bitcoin Buying in New IMF Deal

Highlights: 

• The IMF and El Salvador have reached a new agreement, preventing the nation from funding Bitcoin purchases with public money.
• The new agreement implies that any further Bitcoin purchase will likely come from documented private donations. 
• IMF said that El Salvador’s economy has expanded significantly, exceeding targets from forecasts in 2025.

The International Monetary Fund (IMF) and El Salvador have reached a staff-level agreement covering the second and third reviews of the country’s economic program, with Bitcoin emerging as a central topic during the discussions. However, the agreement still needs approval from the IMF’s Executive Board, and El Salvador must complete several agreed actions before the reviews can be formally completed. 

One of the most important agreements during the discussions is that El Salvador will no longer use public money to buy Bitcoin. The IMF noted that Bitcoin has been added to the country’s holdings since the first review and has been backed by private donations. Documents were provided to support the claims that government funds were not used. 

The latest agreement follows El Salvador’s approval of a $1.4 billion Extended Fund Facility in February 2025. This program gives the nation access to SDR 1.03392 billion, equal to about 360% of its IMF quota. So far, SDR 172.32 million has been released. 

Authorities in El Salvador have confirmed plans to improve how the country reports and manages its Bitcoin holdings. The government has also agreed to strengthen the rules governing digital assets, as well as the systems used to manage risks linked to crypto assets held by the public sector. 

IMF: El Salvador Has Not Used Public Funds to Buy Bitcoin Since June 2025, No Further Accumulation Expected

The IMF said El Salvador has provided documentation verifying that all Bitcoin accumulated since its first EFF review on June 27, 2025 came from private donations, with… pic.twitter.com/x5gsNvZloE

— Wu Blockchain (@WuBlockchain) September 4, 2026

El Salvador’s Economy Continues to Grow as it Agrees to End Public Bitcoin Acquisition

Despite the nation’s focus on Bitcoin, the IMF confirmed that El Salvador’s wider economy has performed better than expected. For instance, the country’s economic growth has exceeded the forecast in 2025. At the same time, its real Gross Domestic Product (GDP) is expected to grow by 4.5% in 2026.

The IMF expects the non-financial public sector’s primary surplus to rise from 2.9% of GDP in 2026 to 3.7% in 2027. This forms part of a wider plan to reduce public debt by 80% by 2030, aligning with the nation’s Fiscal Responsibility Law. 

The IMF linked El Salvador’s remarkable economic expansion to higher investment and consumer spending. Other driving factors include strong remittances, tourism, and foreign capital entering the country. The nation’s improved security has also increased investors’ confidence.

As part of efforts to continue improving its economy, El Salvador’s government plans to reduce spending while improving tax and other government revenue collection. The government also plans to make room for important infrastructure projects and social programs. 

El Salvador stated it plans to strengthen its anti-money laundering and counter terrorist financing (AML/CFT) system. The country will also publish asset declarations from senior public officials. Other measures include better public financial reporting, greater transparency around beneficial ownership companies, and stronger accountability institutions. 

Implication of the New Agreement for El Salvador’s Crypto Treasury

El Salvador will continue holding its existing crypto assets. However, the nation must source funds other than the government to finance future Bitcoin and digital asset purchases. For example, any additional Bitcoin accumulation under the new agreement must come from documented private donations rather than public funds. The IMF and Salvadoran authorities said continued implementation of the agreed reforms will be important for maintaining economic stability.