IMF Ties $120M Payment to El Salvador’s Bitcoin Restrictions

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The IMF has conditionally agreed to release $120 million to El Salvador, contingent on the government curbing its Bitcoin activities.

The funds are part of a broader $1.4 billion loan deal, requiring El Salvador to halt further Bitcoin purchases and dismantle its Chivo wallet system by July.

The IMF’s latest statement reinforces its longstanding opposition to the country’s Bitcoin adoption, first voiced in March. Yet, President Nayib Bukele has defied these demands, maintaining his policy of daily Bitcoin acquisitions.

The disbursement, still subject to IMF board approval, underscores the tension between El Salvador’s crypto ambitions and traditional financial oversight.