IMF–El Salvador Talks Continue Over Bitcoin Policy and Planned Sale of Chivo Wallet

The International Monetary Fund says discussions with El Salvador over the country’s Bitcoin strategy remain ongoing, with talks increasingly centered on transparency, public-sector safeguards, and risk mitigation around digital assets.

As part of those discussions, the IMF confirmed it is engaged in advanced negotiations regarding the future of Chivo, the government-backed Bitcoin wallet launched in 2021. Chivo, hailed at its debut as the world’s first national crypto wallet, has faced persistent criticism over identity theft complaints, security weaknesses, and user account freezes.

IMF Urges Risk Controls as El Salvador Reassesses Chivo

The IMF reiterated that any future engagement with El Salvador on Bitcoin-related matters will prioritize consumer protection, clarity around public spending, and stronger safeguards against financial instability.

The latest update comes as the government reviews options to sell or wind down the Chivo wallet, a possibility previously acknowledged by Stacey Herbert, director of the country’s National Bitcoin Office. She noted that private-sector Bitcoin wallets would continue to operate regardless of Chivo’s fate.

Concerns over Chivo’s performance have long shaped the relationship between El Salvador and the IMF, particularly after the country’s historic decision in 2021 to adopt Bitcoin as legal tender. The IMF repeatedly warned about risks to financial stability and fiscal transparency.

Despite tensions, El Salvador secured a $1.4 billion IMF loan in 2024, following protracted negotiations that included assurances of stronger oversight of the nation’s Bitcoin strategy.

Economic Growth Surprises to the Upside

In its latest statement, the IMF also delivered rare praise for El Salvador’s macroeconomic performance, saying the economy is “growing faster than expected.”

Real GDP growth is projected to reach around 4% this year, with a positive outlook for 2026. The update detailed progress in the country’s 40-month Extended Fund Facility review.

El Salvador Expands Bitcoin Reserves Despite IMF Concerns

Even amid the policy discussions, the administration of Nayib Bukele continues to double down on its Bitcoin strategy.

Last month, the government purchased 1,098 BTC, worth nearly $100 million at the time, lifting El Salvador’s national reserves to 7,509 BTC as of Dec. 22. The country has maintained its unusual policy of buying one bitcoin per day, even during sharp market sell-offs.

The IMF has repeatedly urged the government to avoid increasing its Bitcoin holdings. In a May statement, the Fund said efforts would continue “to ensure no further accumulation” of Bitcoin by the state.

Bukele dismissed those concerns, writing on X on March 4: “No, it will not stop … and it will not stop in the future.”

With El Salvador accelerating its accumulation and the IMF pushing for guardrails, the future of the Chivo wallet and the broader role of Bitcoin in the country’s economy remain key points of negotiation between the two sides.