IMF Adjusts Perspective as El Salvador's Bitcoin Strategy Aligns with Economic Recovery

The International Monetary Fund (IMF) has recognized El Salvador's enhanced economic prospects and commitment to fiscal discipline, marking a significant shift in its previously critical approach towards the country's Bitcoin strategy.

Key Takeaways

The IMF acknowledges El Salvador's economic improvement and fiscal discipline.
Real GDP growth for El Salvador is projected at 4% for 2025.
The IMF has softened its stance, focusing on transparency and public financial protection concerning Bitcoin.
El Salvador continues to purchase Bitcoin while negotiating a $1.4 billion loan package with the IMF.
Policy changes include making Bitcoin acceptance by businesses voluntary and exploring the sale of the Chivo wallet.

IMF notes El Salvador growth as Bitcoin strategy evolves

IMF Praise for Economic Growth

The IMF has updated its forecast for El Salvador, now predicting a real GDP growth of around 4% for 2025, which is higher than previous estimates. This revised outlook is attributed to strong remittance flows, increased investment, and improved security conditions within the country.

Historically, the IMF has been critical of El Salvador's decision to adopt Bitcoin as a legal tender. However, recent statements indicate a shift in tone; while the IMF once opposed the digital currency strategy, it now highlights improvements in transparency, the safeguarding of public finances, and risk reduction related to Bitcoin policies.

Policy Adjustments Amid Loan Negotiations

This change in perspective aligns with El Salvador's pursuit of a $1.4 billion loan package from the IMF, which was agreed upon in March 2025. In response to IMF concerns, the country has implemented several policy revisions. Notably, the requirement for businesses to accept Bitcoin is no longer mandatory, addressing one of the IMF’s major objections. Furthermore, discussions are underway regarding the potential sale of the government-operated Chivo wallet, which aims to lessen direct governmental involvement in cryptocurrency.

Coexistence of Economic Growth and Bitcoin Investments

Despite these policy shifts, El Salvador continues to acquire Bitcoin. In November 2025, the government expanded its Bitcoin reserves, accumulating several thousand coins, based on official reports.

The IMF has acknowledged that the aspects of economic growth are being supported by several contributing factors, creating a more stable macroeconomic environment. The improved performance has led to discussions centered on long-term fiscal sustainability and necessary reforms, rather than focusing solely on immediate risks that previously clouded negotiations.

Current dialogues indicate that El Salvador's Bitcoin investments can coexist with essential fiscal reforms, openness, and international financial collaboration, according to analysts acquainted with the ongoing negotiations.