Tensions over El Salvador’s big Bitcoin bet have started to cool off. The International Monetary Fund, which used to be one of the loudest critics of El Salvador’s move to make Bitcoin legal tender, just changed its tune. Instead of more warnings, the IMF is now giving the country credit for things like tighter budgets, stronger growth, and steadier finances.

In its latest review, the IMF pointed to lower inflation, better-than-expected GDP numbers, and actual steps to get public spending under control. All this progress is easing worries that Bitcoin would wreck the economy or scare away big lenders. Sure, the IMF is still wary about the risks tied to crypto, but its message is a lot less harsh than before.

It’s important to note the IMF isn’t suddenly in love with Bitcoin. What they’re really praising are the old-school economic moves: cracking down on waste, collecting more taxes, and shrinking the deficit. So, it’s not El Salvador’s crypto stash that’s winning people over. It’s the country’s broader push to get its financial house in order.

For President Nayib Bukele, this shift matters a lot. His government’s Bitcoin buying has been a huge sticking point when dealing with international groups. Now that the IMF is recognizing some progress, El Salvador could get easier access to global money and a little breathing room in talks with lenders.

That doesn’t mean the IMF is giving a green light to Bitcoin as policy. They’re still telling the government to be careful, stay transparent, and put safeguards around digital assets. But the conversation has changed. Bitcoin isn’t stealing the spotlight anymore.

Right now, El Salvador’s approach feels less like a standoff and more like a blend part bold crypto experiment, part classic economic management. It’s a mix that’s finally getting a nod, even if it’s a cautious one, from the folks who hold the purse strings.