International Monetary Fund has indicated easing tensions with El Salvador as the country posts stronger than expected economic performance and steadier engagement on digital asset policy. In its latest assessment, the Fund highlighted improved growth dynamics supported by rising confidence, robust remittance inflows, and sustained investment activity. Real gross domestic product is projected to expand by about 4 percent this year, with momentum expected to carry into 2026. The update marked a shift in tone from earlier communications that emphasized concern over fiscal and financial risks linked to bitcoin adoption. While discussions around digital assets remain active, the absence of renewed pressure to halt bitcoin accumulation suggests a more pragmatic phase in negotiations. The assessment places macroeconomic stability at the center of dialogue, signaling that growth outcomes and institutional safeguards are increasingly shaping the relationship between El Salvador and international lenders.
Despite earlier recommendations urging caution, El Salvador has continued to expand its national bitcoin position under President Nayib Bukele. During a period of sharp market weakness in November, the government added more than one thousand bitcoin to its treasury, bringing total holdings close to seventy five hundred units. At current market levels, the position represents a significant state level exposure relative to the size of the economy. Officials have framed the strategy as a long term reserve allocation rather than a short term trading decision, maintaining daily accumulation policies with occasional larger purchases during downturns. The IMF has acknowledged that discussions around the bitcoin project are continuing, with a stated focus on improving transparency, protecting public resources, and reducing fiscal and financial risks associated with volatility and governance.
Progress has also been noted on broader policy commitments linked to El Salvador’s financing arrangements. The IMF confirmed that negotiations surrounding the sale of the government operated crypto wallet Chivo are well advanced, an issue viewed as central to narrowing the state’s direct operational role in digital asset infrastructure. Earlier this year, El Salvador secured a multibillion dollar financing package that anchored ongoing policy reforms and external support. Continued engagement is expected as authorities work toward completing the next program review, balancing innovation with macroeconomic discipline. For markets, the evolving tone suggests that bitcoin policy is becoming a managed variable within a wider economic framework rather than a singular point of contention. The emphasis on growth, confidence, and institutional safeguards aligns the country’s digital asset approach more closely with conventional stabilization goals.
