IMF Says El Salvador Stopped Using Public Funds For Bitcoin

El Salvador has not used public funds to buy bitcoin since the last review of its loan program, according to a new report from the International Monetary Fund. The financial agency stated that recent additions to the country holdings came entirely from private donations rather than state budgets. Officials also noted that no further government accumulation is expected moving forward.

This update follows years of global attention after El Salvador made history in 2021 by adopting bitcoin as legal tender. While President Nayib Bukele previously announced plans to purchase one coin every day, questions often arose regarding the funding sources. The recent report confirms that state resources were left out of the recent crypto inflows.

As part of discussions with the IMF for a loan agreement, El Salvador has agreed to modernize its digital asset regulations and strengthen public sector risk management. The government also handed operational control of its state wallet to a private operator as public participation slowed down. Traders will watch how these policy adjustments shape relations between traditional financial bodies and crypto friendly nations.