As IMF negotiations deepen, El Salvador bitcoin policy remains central to a broader push that mixes fiscal reforms, transparency pledges, and an expanding digital asset strategy.
IMF negotiations center on transparency, oversight, and reform
El Salvador advanced its talks with the IMF as the government boosted its Bitcoin holdings and sharpened its digital asset agenda. The ongoing discussions focused on transparency, fiscal discipline, and risk safeguards, while the country continued building its treasury reserves. Moreover, negotiations progressed as authorities maintained daily Bitcoin purchases and prepared a new wave of structural reforms.
The IMF steered talks around El Salvador’s next review under the Extended Fund Facility, stressing the need for stronger oversight and disclosure. The government reiterated its fiscal plans as the review advanced and underlined its pledge to support long-term economic stability. In addition, the IMF acknowledged the country’s expanding economy and pointed to improving confidence and capital inflows.
Authorities moved ahead with reforms that tightened banking rules and modernized crisis-management tools, while introducing updated liquidity standards. These measures supported broader financial stability goals and brought regulations closer to international norms. That said, the IMF noted that the new framework also helped reduce domestic borrowing needs and improved overall balance-sheet conditions.
The government continued working with the IMF to unlock the next tranche of the $1.4 billion loan package. The process remained active as both sides sought to finalize the terms for the second program review. Furthermore, the IMF signaled that policy dialogue would continue until all required conditions were agreed and implemented.
Bitcoin accumulation continues despite IMF pressure
El Salvador bitcoin reserves increased as the government stuck to a consistent purchase policy, even while the IMF pressed for limits on additional accumulation. The authorities added more than one thousand coins in their latest reported transaction, pushing sovereign holdings above seven thousand units. Moreover, officials reiterated their long-term strategy, signaling that short-term market volatility and external criticism would not alter their course.
The IMF kept calling for safeguards to protect public finances and mitigate financial risks tied to digital assets. However, the country pressed ahead with crypto-related initiatives and expanded support infrastructure for private-sector wallets. Additionally, the government reported progress toward completing the sale of the state-run Chivo wallet after months of negotiations with prospective buyers.
At the same time, El Salvador broadened its regulatory framework to accommodate digital asset firms and attract international players. These actions strengthened the country’s position as a regional crypto hub and encouraged deeper sector participation. Meanwhile, the IMF maintained its emphasis on transparency and clear reporting as the government accelerated its Bitcoin-focused agenda.
Economic momentum and structural reforms underpin negotiations
El Salvador posted stronger-than-expected growth while the IMF projected annual GDP expansion close to four percent. The government cited rising remittances and renewed investment flows as key drivers of this momentum. Moreover, recently adopted structural changes have reinforced expectations for solid economic performance over the coming year.
Authorities advanced pension system reviews and released a medium-term fiscal roadmap aligned with program targets. These steps aimed to stabilize long-term obligations, contain debt risks, and ensure prudent public-sector planning. In parallel, expanded social-sector allocations underlined a continued commitment to essential services, even as consolidation efforts proceed.
The IMF said continued engagement would shape the final phase of discussions for the upcoming review. Both sides remained focused on policy commitments that enhance transparency and reduce macro-financial risks. Moreover, progress on reform implementation has positioned El Salvador for broader financial support once the current round of talks concludes.
Overall, El Salvador’s combination of ongoing IMF negotiations, firm Bitcoin accumulation, and advancing structural reforms highlights a high-stakes strategy that seeks growth and market confidence while testing international tolerance for sovereign-level crypto exposure.
Source: https://en.cryptonomist.ch/2025/12/23/el-salvador-bitcoin-imf-talks/
