IMF Imposes New Bitcoin Restrictions on El Salvador in $1.4 Billion Loan Deal

IMF Imposes New Bitcoin Restrictions on El Salvador in $1.4 Billion Loan DealIn Brief

IMF’s $1.4 billion Extended Fund Facility (EFF) restricts El Salvador’s government from acquiring more Bitcoin and limits its role in Bitcoin-related activities.

The agreement requires the liquidation of the Fidebitcoin trust, termination of the Chivo wallet system, and public disclosure of government BTC holdings.

The International Monetary Fund (IMF) has imposed strict new conditions on El Salvador’s Bitcoin strategy as part of its 40-month, $1.4 billion loan agreement. According to a March 2025 IMF country report, El Salvador’s government must cease all new Bitcoin purchases, eliminate mandatory BTC acceptance, and scale back its national Bitcoin infrastructure.

Key IMF Requirements for El Salvador

1. No new government Bitcoin purchases – A "ceiling of 0" has been set for public sector BTC acquisitions.
2. Liquidation of the Fidebitcoin trust by July 2025 – This fund was used to support El Salvador’s Bitcoin adoption.
3. Ending government involvement in the Chivo wallet – User funds must be segregated, and all Bitcoin wallet addresses must be publicly disclosed.
4. Removing Bitcoin’s legal tender mandate – Businesses will no longer be obligated to accept BTC, making it voluntary in the private sector.
5. Banning debt or token issuance tied to Bitcoin, restricting El Salvador’s ability to issue Bitcoin-backed financial instruments.

Despite the IMF’s restrictions, El Salvador still holds approximately 6,100 BTC ($510 million), with President Nayib Bukele continuing to court crypto and AI investments. The country has recently engaged with a16z co-founders Marc Andreessen and Ben Horowitz to discuss making El Salvador a regional tech hub, while Michael Saylor and Tether have also expanded their presence in the nation.

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