El Salvador’s $1.4 billion, 40-month Extended Fund Facility (EFF), approved in December of last year, now has new conditions. It was approved initially in December and already had strict restrictions for government. Bitcoin The retention of current holdings is allowed, but not new activities.
“Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin,” Nigel Clarke wrote a press release. He is the deputy managing director of IMF and also serves as its acting chairman.
Three key requirements for cryptography are included in the agreement. It was published as part of a country report by IMF on Monday.
First of all, "continuous quantitative performance criteria" The government has banned the purchase of new Bitcoins by any public sector entity, while maintaining its a "ceiling of 0" The program will run for the duration of your chosen programme.
New arrangements mandate liquidation by July 20,25 of Fidebitcoin Trust Fund and end of government involvement in Chivo wallet System.
Third, all governments must publish their Bitcoin addresses. Separate funds for Chivo users are also required. Financial statements of crypto-related companies should be audited.
Amendments to the country's Bitcoin Law enacted in June 2021 are also underway to clarify "the legal nature of Bitcoin" And remove "the essential features of legal tender" The law.
It will happen by "eliminating the obligation for the public and private secrtor to accept Bitcoin in transactions" You can also read more about it here. "making acceptance of Bitcoin by the private sector voluntary" IMF writes that the use of this technology by public sectors will be restricted.
The Backward and Forward
Decrypt In December of last year, we reported on El Salvador’s forced to reduce its efforts in integrating Bitcoin. The country had already agreed on some terms in January to meet the IMF.
It now appears that the IMF's language in previous documents, with its use of the term "confined" – extends to El Salvador’s Bitcoin purchases, according to Samson Mow, CEO of Bitcoin technology firm JAN3.
"I would have preferred to hear it from the Bukele administration than from the IMF," Mow was on X.
We now know exactly what “confined” means. No more #Bitcoin buys for El Salvador.
I prefer to hear from Bukele’s administration rather than from IMF. https://t.co/a7ZLh3DWQG pic.twitter.com/TuZLdrPOeC
— Samson Mow (@Excellion) March 4, 2025
It also forbids any issuance. "any type of debt or tokenized instrument that is indexed to or denominated in Bitcoin." The restrictions that apply to these products are categorized as "continuous quantitative performance criteria" – making them mandatory rather than optional.
Despite these restrictions, El Salvador's Bitcoin holdings reportedly stand at approximately 6,100 BTC with a current value of roughly $510 million, following the purchase of another 5 BTC from Bitfinex, according to data tracked by Arkham Intelligence.
El Salvador is also welcoming both AI and crypto businesses. On March 2, President Nayib Bukele met with Andreessen Horowitz co-founders Marc Andreessen (a16z), and Ben Horowitz to discuss investment opportunities in artificial intelligence and possible development of El Salvador into a regional technology hub.
Bukele and Strategy Chairman Michael Saylor had sat together two weeks prior to talk about Bitcoin. Tether, a stablecoin company that operates in Nigeria since January of this year, opened a branch there.
Stacy Elliott is the editor.