IMF Nears Deal on Chivo Wallet Sale as El Salvador Sticks to Bitcoin Strategy

El Salvador is once again under scrutiny as talks with the International Monetary Fund advance over its Bitcoin strategy. Although negotiations to sell the state-run Chivo Bitcoin wallet are nearing completion, disagreements persist over continued government BTC purchases. Public statements by President Nayib Bukele continue to conflict with IMF conditions under a major loan agreement.

IMF Confirms Advanced Talks to Sell El Salvador’s Chivo Wallet

IMF officials confirmed that negotiations to sell Chivo, El Salvador’s government-backed Bitcoin wallet, are at an advanced stage. As outlined in a Monday release, the fund’s mission chief said authorities remain engaged with staff on the broader Bitcoin agenda, including public-sector involvement. In parallel, separate discussions are underway regarding the country’s ongoing Bitcoin acquisition.

The discussions follow a financing agreement reached in May, under which the IMF approved a $120 million disbursement as part of a broader $1.4 billion loan package for 2024. The deal set limits on government Bitcoin activity and included a commitment to reduce involvement in the Chivo wallet.

Questions remain over whether the government is complying with those terms. IMF data released in July indicated that no BTC purchases were made after December 2024. By contrast, updates from El Salvador’s Bitcoin Office show continued acquisitions. The disclosures include a purchase of 1,090 BTC in November, valued at about $100 million at the time.

Bitcoin Purchases Remain a Sticking Point in Negotiations

These conditions continue to frame negotiations:

• Public sector BTC activity must remain limited.
• Private businesses may accept Bitcoin voluntarily.
• Government participation in the Chivo wallet should be reduced.
• Sale terms for Chivo remain confidential.
• Oversight continues on future BTC purchases.

Bitcoin became legal tender in El Salvador in 2021, becoming the first country to adopt the OG crypto. President Nayib Bukele backed the policy and directed state funds toward regular purchases. On Bitcoin Day, authorities added 21 BTC to national reserves, drawing attention despite IMF restrictions.

Government data shows holdings of 7,509 Bitcoin as of Monday, worth roughly $659 million at the time of publication. At the same time, Bukele reiterated in March that the country would continue buying at least one BTC per day. The policy stance raises questions about the durability of the IMF agreement and the future pace of disbursements.

Tensions increased in July when the IMF criticized El Salvador for bypassing the non-accumulation pledge through the Chivo wallet. With talks over the wallet’s sale ongoing, future policy direction remains unclear as negotiations continue.