El Salvador is no longer using public funds to increase the use of bitcoin and Chivo electronic wallet is largely withdrawn from public participation

On 4 September, the International Monetary Fund (IMF) announced that an employee-level agreement had been reached with the Salvadoran authorities for the second and third combined reviews under the Extended Fund loan arrangement. With the approval of the IMF Executive Board, El Salvador will receive approximately $140 million (101.96 million SDR). In the context of the Bitcoin-related arrangements, the IMF has identified a number of key facts: the Chivo electronic wallet has largely withdrawn from public participation, and most ownership and operational control has been transferred to private operators; the increased holding of bitcoin since the first review has been documented as coming from private donations and unused public resources; and El Salvador has committed not to increase any bitcoin in the future except for recorded private donations. The parties also reached an understanding on the modernization of the digital asset law, the regulatory and oversight framework and the enhancement of governance and risk management arrangements for secure assets in the public sector. Structural reforms such as pension reform, civil service reform, institutional strengthening and financial strengthening of central banks, and the AML/CFT framework will continue. The IMF emphasizes that strong project ownership and timely implementation of reforms remain essential to further strengthen macroeconomic stability and resilience and to create sustainable and inclusive private-sector-led conditions for growth。