IMF and El Salvador Advance in Bitcoin Compliance Discussions

• Lyla Velez
• December 23, 2025
• Policy
• 0 Comments

The discussions underscore efforts to manage Bitcoin’s impact on El Salvador’s economy. IMF emphasizes unwinding public Bitcoin holdings and monitoring crypto assets.

Under President Nayib Bukele, El Salvador adopted Bitcoin as legal tender in 2021.

The IMF has set conditions under its 40-month Extended Fund Facility, requiring mitigation of Bitcoin risks. The focus includes unwinding public sector Chivo participation.

Immediate market reactions include increased scrutiny of Bitcoin policies. The IMF’s stance on El Salvador’s crypto oversight aims to stabilize economic influences. Market implications include potential lower public sector Bitcoin holdings and enhanced consumer protections.

Efforts to address Bitcoin compliance could include new regulatory frameworks. Analysts suggest the outcome may impact Bitcoin’s use in El Salvador and set precedents for other nations.

El Salvador’s progress with the IMF could lead to regulatory adjustments. Historical trends indicate institutional compliance may impact the wider crypto industry. These discussions signal ongoing dialogue on Bitcoin’s economic role.

Bitcoin risks should continue to be mitigated. An early unwinding of the public sector’s participation in the government’s e-wallet (Chivo) remains critical, and efforts should continue to keep the public sector’s holdings of Bitcoin unchanged.