IMF, El Salvador Talks Continue Over Bitcoin Project, Chivo e-Wallet Sales

The International Monetary Fund (IMF) said Tuesday that discussions regarding El Salvador’s Bitcoin project continue “centered on enhancing transparency, safeguarding public resources, and mitigating risks.”

The international agency is also in advanced talks, negotiating for the sale of the government-run Chivo crypto wallet. The first Bitcoin-focused government wallet reportedly saw widespread accusations of identity theft, fraud and bugs, leading to accounts being frozen.

Last year, one of the architects of the Chivo wallet said that the government should shut down the wallet application “due to the controversy it has generated since its launch.”

In 2024, El Salvador secured a $1.4 billion IMF loan after the nation’s Bitcoin adoption strained IMF relations.

At the time, Stacy Herbert, director of Salvador’s National Bitcoin Office, said Chivo wallet “will be sold or wound down.” However, several private sector Bitcoin wallets will continue serving El Salvador, she noted.

IMF Continues Bitcoin Discussions With El Salvador

In the Tuesday update, the IMF emphasized that further Bitcoin discussions with El Salvador will be centered on factors like transparency and mitigating risks.

Further, the IMF praised the Central American nation for its economic growth, which it says is “expanding at a faster than anticipated.”

“Real GDP growth is projected to reach around 4% this year and with very good prospects for next year,” it added.

The recent update details the progress of the second review of El Salvador’s 40-month Extended Fund Facility (EFF).

Is Salvador Still Stacking BTC?

Last month, El Salvador added 1,098 BTC to its national Bitcoin treasury, worth nearly $100 million, doubling down on its accumulation strategy, despite a significant market selloff.

Per Salvador’s Bitcoin Office transaction data, the country is still stacking the crypto asset, with the latest purchase reported on December 22. The country reported increasing its reserves to 7,509 BTC.

The sustained policy of daily acquisitions – one Bitcoin per day – has been maintained even during periods of high volatility.

In May, the IMF said that “efforts will continue” to ensure El Salvador doesn’t accumulate more BTC. Nevertheless, El Salvador has kept purchasing more BTC in apparent contradiction with the terms of the IMF deal agreement.

“No, it’s not stopping,” Salvadoran President Nayib Bukele posted on X on March 4. “If it didn’t stop when the world ostracized us and most “Bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future.”