El Salvador’s increased bitcoin holdings after entering an International Monetary Fund financial support programme were obtained through private donations rather than government funds, the IMF said. It said verification of data submitted by Salvadoran authorities showed no additional purchases using public resources after the first review. The IMF also said control of the Chivo e-wallet was transferred to a private operator, and it expected no further bitcoin accumulation beyond confirmed donations.

The International Monetary Fund urged internationally coordinated regulation to respond to the spread of stablecoins, warning of higher risks of currency substitution and unstable capital flows in emerging markets. IMF Managing Director Kristalina Georgieva said stablecoins and tokenisation can make cross-border payments faster and cheaper but require global regulatory coordination. She warned stablecoins could weaken banks’ intermediation, be used for tax evasion and undermine capital controls, and said central banks should maintain sound banking systems and bolster foreign reserves.