IMF clears 138 million dollar disbursement for El Salvador despite Bitcoin waivers

The International Monetary Fund completed the second and third reviews of El Salvador's 40-month, 1.4 billion dollar financing program, approving an immediate disbursement of 138 million dollars. CryptoSlate and Cointelegraph both reported that the IMF executive board granted waivers despite the country missing certain performance criteria related to state Bitcoin accumulation. [1][2][3]

CryptoSlate reported that El Salvador maintains a 666 million dollar Bitcoin reserve. Under the renewed commitments, the country agreed to limits on state Bitcoin accumulation, with no further accumulation planned beyond documented donations. CryptoSlate noted that the fund is demanding a deeper retreat from the Chivo platform and greater transparency around crypto-assets. [1]

According to Cointelegraph, the IMF stated that efforts will continue to reduce state involvement in Bitcoin-related activities and strengthen regulatory frameworks. CryptoSlate reported that the board approved the release on October 1, providing an immediate disbursement equivalent to 101.96 million Special Drawing Rights, which equals 138 million dollars. [1][2][3]

El Salvador is a sovereign Central American nation with its capital in San Salvador and a population of approximately six million people. The Salvadoran economy has been fully dollarized since 2001. [4][6]