The International Monetary Fund has confirmed that negotiations for the sale of El Salvador’s government-run Chivo Bitcoin wallet are at an advanced stage, as discussions continue between IMF officials and Salvadoran authorities over the country’s Bitcoin-related policies.
In a statement issued Monday, the IMF said the government of El Salvador is continuing talks with the fund regarding its Bitcoin project and confirmed that negotiations to sell the Chivo Bitcoin wallet are progressing. An IMF spokesperson also noted that there are separate discussions underway related to Bitcoin purchases by the government.
The update follows a deal reached in May under which El Salvador secured $120 million as part of a broader $1.4 billion financing agreement with the IMF. As part of that arrangement, the government committed to halting further Bitcoin acquisitions and gradually reducing public sector involvement in Bitcoin-related activities.
Chivo Bitcoin wallet talks linked to IMF loan conditions
Under the terms of the IMF El Salvador agreement that were made public, the government agreed to confine public sector participation in Bitcoin economic activity, ensure that private sector acceptance of Bitcoin remains voluntary, and wind down state involvement in the Chivo Bitcoin wallet. The potential sale of the wallet is seen as a key component of meeting those conditions.
While the IMF reported in July that El Salvador had not purchased any Bitcoin since December 2024, there remains uncertainty over whether the country is fully adhering to the deal. El Salvador’s official Bitcoin Office has continued to announce Bitcoin purchases, including the acquisition of 1,090 BTC in November, valued at roughly $100 million at the time.
Cointelegraph contacted the IMF for further clarification. A spokesperson confirmed that negotiations for the sale of Chivo are ongoing but declined to comment on the specifics of the transaction.
El Salvador became the first country to recognize Bitcoin as legal tender in 2021, a move championed by President Nayib Bukele. Since then, the government has steadily accumulated Bitcoin as part of a national investment strategy. According to data published by the Bitcoin Office, El Salvador held 7,509 Bitcoin as of Monday, with a market value of approximately $659 million at the time of publication.
Despite the IMF agreement, President Bukele has publicly signaled that the country’s Bitcoin strategy will continue. In March, he stated that El Salvador would keep buying at least one Bitcoin per day. It remains unclear how this stance aligns with the commitments outlined in the IMF financing deal or how it may affect the final outcome of negotiations surrounding the Chivo Bitcoin wallet.
As talks continue, the sale of the state-backed wallet could mark a significant shift in El Salvador’s approach to Bitcoin adoption while shaping its ongoing relationship with international financial institutions.
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