Tensions over El Salvador’s bitcoin holdings ease as IMF praises economic progress

The International Monetary Fund (IMF) praised El Salvador’s stronger-than-expected economic growth in a statement on Monday.

The update notably did not include previous IMF suggestions that El Salvador would be putting on hold its strategy of accumulating bitcoin BTC$87,872.63, something that country — under the leadership of President Nayib Bukele — has continued to do since negotiating an IMF loan package several months ago.

Diverting from its normal strategy of adding on bitcoin per day, El Salvador in November added more than 1,000 BTC to its national treasury strategy amid that month’s steep selloff. The government has now accumulated nearly 7,500 BTC worth about $660 million at current prices.

The IMF did note that negotiations for the sale of the government’s crypto wallet Chivo are “well advanced. “Discussions with regards to the Bitcoin project continue, centered on enhancing transparency, safeguarding public resources, and mitigating risks,” the agency added.

The IMF said El Salvador’s economy is expanding at a faster than anticipated pace on the back of improved confidence, record remittances, and buoyant investment. Real GDP growth is projected to reach around 4% and the 2026 outlook is “very good”.

In March, El Salvador reached an agreement with the IMF to receive a $3.5 billion loan package.“Close engagement with the Salvadoran authorities is expected to continue in the period ahead with the objective of reaching a staff level agreement on all policies and reforms needed to complete the second review of the EFF program,” the IMF said.