IMF Continues Talks with El Salvador on Bitcoin Project and Chivo Wallet Sale
The International Monetary Fund (IMF) has stated that discussions with El Salvador regarding its Bitcoin project are ongoing. The talks focus on issues of transparency, safeguarding public resources, and mitigating risks. A key point in these advanced discussions is the potential sale or winding down of the government's Chivo wallet, which has previously faced problems such as identity theft, fraud, and technical bugs leading to account freezes.
In 2024, El Salvador secured a $1.4 billion loan from the IMF amid tensions linked to its Bitcoin adoption. Stacy Herbert, director of El Salvador’s National Bitcoin Office, has previously confirmed that the Chivo wallet would either be sold or phased out.
The IMF's update also notes progress on the second review of El Salvador’s 40-month Extended Fund Facility (EFF) arrangement. Despite IMF concerns, El Salvador continues its policy of purchasing one Bitcoin per day, having added 1,098 BTC in the last month alone, bringing its total reserves to 7,509 BTC as of December 22, 2025.
While the IMF has indicated it would strive to limit the country's accumulation of more Bitcoin, El Salvador remains committed to its strategy. The IMF has praised El Salvador’s economic growth, projecting real GDP growth of around 4% for the current year with favorable prospects for the next year.
