El Salvador’s Economy Surges, Bitcoin Stance Gains IMF Nod as Tensions Ease
The International Monetary Fund (IMF) has issued a new statement, commending El Salvador’s economic performance for exceeding expectations and notably omitting its prior recommendation for the nation to “pause its Bitcoin purchases.” This shift is widely interpreted as a significant de-escalation in the previously strained relationship between the IMF and El Salvador regarding the latter’s pioneering Bitcoin policy.
Under the leadership of President Nayib Bukele, El Salvador has consistently pursued its “Bitcoin strategy” in recent years. This commitment remained steadfast even during negotiations for an IMF loan earlier this year, with the nation continuing its digital asset accumulation.
Remarkably, during a significant cryptocurrency market downturn in November, El Salvador deviated from its customary “buy one Bitcoin daily” dollar-cost averaging approach. Instead, it aggressively added over 1,000 Bitcoins to its reserves within that single month, demonstrating strong conviction in its long-term strategy.
As of the latest reports, El Salvador’s cumulative Bitcoin holdings stand at nearly 7,500 BTC, valued at approximately $660 million.
Chivo Wallet Sale Negotiations Advance
Further signaling progress, the IMF statement also revealed “substantial progress” in the Salvadoran government’s negotiations to sell its state-backed Chivo wallet. Chivo, an official Bitcoin wallet launched by the government, played a pivotal role in the initial stages of Bitcoin’s adoption as legal tender in the country.
The IMF further elaborated that discussions between the two parties regarding Bitcoin-related policies are ongoing. These conversations are primarily focused on three key areas: enhancing transparency, ensuring the security of public resources, and mitigating potential risks associated with digital asset integration.
El Salvador’s Economic Growth Outpaces Projections
Beyond the digital currency discourse, the IMF highlighted El Salvador’s robust economic growth, which has surpassed market expectations. This impressive performance is primarily attributed to bolstered confidence, record-high remittances from abroad, and a resurgence in investment activities.
The IMF projects El Salvador’s real GDP growth rate to reach approximately 4% and has assessed the nation’s economic outlook for 2026 as “very optimistic,” underscoring a positive trajectory for the Central American country.
Disclaimer: This article is provided for market information purposes only. All content and opinions are for reference only and do not constitute investment advice. They do not represent the views or positions of the author or Blockcast. Investors should make their own decisions and trades. The author and Blockcast will not bear any responsibility for direct or indirect losses incurred by investors’ transactions.
