Key Takeaways
- IMF Mission Chief for El Salvador disclosed Monday that discussions regarding the wallet’s sale have reached advanced stages.
- As of Monday, government data indicates El Salvador holds 7,509 Bitcoin in its reserves,
The International Monetary Fund (IMF) has confirmed that El Salvador is moving forward with plans to sell its government-operated Chivo crypto wallet, signaling a potential shift in the country’s Bitcoin strategy as it works to secure continued international financing.
IMF Mission Chief for El Salvador disclosed on Monday that discussions regarding the wallet’s sale have reached advanced stages.
The potential sale represents a critical component of El Salvador’s ongoing efforts to access additional funding under its IMF program. These negotiations have extended over several months as the country seeks to unlock subsequent disbursements designed to bolster its economic stability.
El Salvador’s relationship with the IMF grew complicated following the nation’s groundbreaking 2021 decision to adopt Bitcoin as legal tender. The country had initially pursued an Extended Fund Facility worth billions of dollars in early 2021, but those discussions stalled after the cryptocurrency legislation took effect. The move, championed primarily by President Nayib Bukele, positioned El Salvador as the first country globally to grant Bitcoin official currency status.
A breakthrough occurred in 2024 when the two parties reached a $1.4 billion loan arrangement. Under that agreement’s terms, the IMF delivered $120 million in May, with El Salvador committing to halt further Bitcoin acquisitions. The deal also mandated that government involvement in Bitcoin-related economic activities be curtailed, that private sector cryptocurrency acceptance remain voluntary, and that the administration reduce its role in operating the Chivo platform.
Questions have emerged regarding El Salvador’s adherence to these commitments. While the IMF reported in July that no government Bitcoin purchases had occurred since December 2024, the country’s Bitcoin Office has continued publishing announcements of cryptocurrency acquisitions. Most notably, the office declared a November purchase of 1,090 Bitcoin valued at approximately $100 million, creating apparent contradictions with the loan terms.
As of Monday, government data indicates El Salvador holds 7,509 Bitcoin in its reserves, accumulated through the buying program initiated under Bukele’s administration.
Despite uncertainties surrounding Bitcoin purchases, the IMF expressed confidence in El Salvador’s broader fiscal performance. As per reports, fund officials praised the government’s dedication to fiscal discipline, noting that the country appears positioned to meet its end-2025 primary balance objectives. The recently approved 2026 budget aligns with goals for further deficit reduction while simultaneously expanding social welfare expenditures, according to the IMF’s assessment.
These fiscal measures are reportedly contributing to reserve accumulation and decreased domestic borrowing, both consistent with program benchmarks established under the lending agreement.
The sale of the Chivo wallet would mark a substantial reversal of El Salvador’s crypto ambitions. Launched as the government’s official digital wallet platform, Chivo was central to the country’s Bitcoin adoption strategy, offering citizens a state-backed tool for cryptocurrency transactions.
The IMF has not provided a timeline for when the Chivo sale might be finalised, nor has it specified potential buyers or sale structure details. El Salvador’s government has not issued public statements clarifying its position on recent Bitcoin acquisitions or addressing apparent discrepancies with IMF agreement terms.
