|
Getting your Trinity Audio player ready...
|
- IMF says negotiations to sell the Chivo wallet are “well advanced.”
- The move is tied to a $1.4B IMF loan agreement with Bitcoin restrictions.
- Bukele continues to insist the government is still buying BTC.
El Salvador’s long-running Bitcoin experiment faces fresh scrutiny after the International Monetary Fund said negotiations to sell the government’s Chivo Bitcoin wallet are “well advanced.” The statement contrasts sharply with President Nayib Bukele’s public insistence that the country has not stopped buying Bitcoin.
In a statement released Monday, the IMF’s mission chief for El Salvador confirmed that talks with government officials are ongoing and that plans to offload the state-run e-wallet are progressing. The disclosure suggests the government may be preparing to exit part of its direct involvement in Bitcoin infrastructure, including assets held through Chivo.
IMF Deal Puts Bitcoin Strategy Under Pressure
The comments follow a financing agreement reached earlier this year in which the IMF committed $120 million as part of a broader $1.4 billion loan package for El Salvador. Under the terms made public, the government agreed to scale back its Bitcoin-related activities, stop accumulating BTC, and gradually wind down its role in the Chivo wallet.
The IMF reiterated that public-sector exposure to Bitcoin should remain limited and that private-sector use of the asset should be voluntary. A spokesperson for the fund said discussions around the Chivo sale are ongoing but declined to provide details.
Conflicting Signals on Bitcoin Purchases
Whether El Salvador is complying with the agreement remains unclear. In July, the IMF said the government had not purchased Bitcoin since December 2024. However, the country’s Bitcoin Office has continued to announce acquisitions, including a purchase of more than 1,000 BTC in November.
Bukele has also publicly rejected the idea of halting Bitcoin accumulation. In March, he said the government would continue buying at least one Bitcoin per day, a pledge that appears to conflict with the IMF-backed commitments.
As of this week, official data from the Bitcoin Office shows El Salvador holding 7,509 BTC, valued at roughly $659 million at current prices.
Chivo Wallet at the Center of the Shift
Launched alongside Bitcoin’s legal tender status in 2021, the Chivo wallet was a cornerstone of El Salvador’s crypto rollout. It allowed citizens to transact in Bitcoin and U.S. dollars, with the government heavily involved in its operation.
Selling the wallet would mark a symbolic retreat from that hands-on approach. While Bitcoin would remain legal tender, a Chivo sale could reduce the state’s direct exposure to crypto volatility and operational risk.
What Comes Next
The gap between Bukele’s rhetoric and the IMF’s statements leaves open questions about enforcement and next steps. The outcome of the Chivo negotiations may offer the clearest signal yet of how far El Salvador is willing—or able—to recalibrate its Bitcoin strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
