- The International Monetary Fund confirmed that El Salvador is moving toward selling its government-run Chivo wallet as part of a $1.4 billion loan agreement.
- Conflicting reports exist regarding the country’s Bitcoin purchases, with the IMF claiming buying paused in 2024 while the Salvadoran government reports ongoing daily acquisitions.
- Despite IMF pressure to scale back crypto activities, El Salvador recently passed new laws to expand Bitcoin banking services for qualified investors and institutional clients.
The International Monetary Fund (IMF) said El Salvador is close to selling Chivo, the government-run Bitcoin wallet, and that talks on the country’s Bitcoin policy are still ongoing. It also said there are separate discussions focused specifically on Bitcoin purchases.
The statement ties back to a May agreement under a 2024 loan package worth US$1.4 billion (AU$2.1 billion), including a US$120 million (AU$183.6 million) payment.
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El Salvador to Stop Buying Bitcoin… Apparently
Under the published terms, El Salvador would stop buying Bitcoin, scale back public-sector activity tied to Bitcoin, and step away from Chivo. But it is still unclear if the government has fully followed the commitment to stop purchases.
The IMF said in July that no Bitcoin had been bought since December 2024, but El Salvador’s Bitcoin Office has continued posting purchase announcements, including 1,090 BTC valued at about US$100 million (AU$153 million) in November.
El Salvador made Bitcoin legal tender in 2021 under President Nayib Bukele and has continued to frame Bitcoin as part of its strategy. Back in March, the president announced that Bitcoin purchases were not stopping, defying the IMF, and that pressures from the IMF would not deter the country’s Bitcoin activities.
The Bitcoin Office reported holdings of 7,509 BTC, worth about US$659 million (AU$1 billion) as of Monday, while Bukele said in March that buying at least one Bitcoin per day would continue.
Recently, El Salvador’s National Assembly passed the Investment Banking Law, enabling institutions to provide Bitcoin services to qualified investors.
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