Bitcoin News

Story: IMF Approves $140 Million to El Salvador After Bitcoin’s Legal Status Revoked

By Jean-Luc Maracon

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Bukele, Security, and the Social Cost. Nayib Bukele has been in power since 2019. His method is known: a firm hand on security, budgetary…

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Bitcoin Sacrificed, Economy Rewarded. Bitcoin, then. The experiment lasted a little over three years.

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The IMF has just approved a $140 million tranche for El Salvador. Not a gift — a transaction.

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El Salvador had been living this experiment for a little over three years. Three years trying to prove that a state could operate with an asset as volatile as Bitcoin alongside…

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The formal approval of the IMF's board of directors is still pending to actually release these funds. It's an administrative step, but it matters.

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Nayib Bukele has been in power since 2019. His method is known: a firm hand on security, budgetary austerity, aggressive communication on social networks.

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But the human cost is real. About 15,000 civil servants have been laid off, according to economists.

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And despite the growth, about 30% of the population still lives below the poverty line. El Salvador remains one of the countries with the lowest growth rates in Central America…

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Human rights organizations have also sounded the alarm over the methods used to reduce crime — mass arrests, detention conditions, civil rights under pressure.

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Related topic: Bitcoin Surpasses $80,000 and Aims for a New High Before April 2028 Halving

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Bitcoin, then. The experiment lasted a little over three years. The initial idea was ambitious: financially include the unbanked populations, attract crypto investors, position…

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See also: SEC Approves Options for WisdomTrees BTCW, Empowering Institutional Bitcoin Strategies

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But in practice, adoption by the population remained limited. Many Salvadorans did not use Bitcoin daily. The asset's volatility made it complicated to pay for a tortilla or rent.

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So when the IMF set its conditions to unlock $1.4 billion, Bukele's political calculation was quite direct: $1.

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Investors and remittances continued to flow in. The Salvadoran diaspora sends significant amounts each year — it's a major source of income for the country, and it didn't depend…

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