IMF-Backed Sale or Closure of El Salvador’s Chivo Wallet Progresses

The International Monetary Fund (IMF) is in advanced negotiations with El Salvador regarding the government-operated Chivo Bitcoin wallet. Discussions focus on either selling or winding down the platform, which launched in September 2021. This dialogue is part of the IMF's review of El Salvador's 40-month Extended Fund Facility (EFF) program, emphasizing transparency and reducing financial risk associated with Bitcoin.

Bitcoin Policy Under Scrutiny

Bitcoin remains a contentious issue between El Salvador and the IMF due to its price volatility and public finance risks.
In March, the IMF requested El Salvador halt Bitcoin accumulation and dismantle public structures for BTC purchase.
El Salvador has complied, initiating a phase-out of the Chivo wallet.

Despite this, El Salvador’s Bitcoin Office continues to update daily purchases, holding 7,509.37 BTC valued over $656 million.

Economy Remains Strong

El Salvador's economy is surpassing expectations with projected GDP growth near 4% this year.
Fiscal targets are on track, reserves are increasing, and domestic borrowing is decreasing.
Advancements include new banking stability laws, Basel III standards adoption, and updated anti-money laundering rules.

The IMF will maintain close engagement with Salvadoran authorities as these developments continue.