- El salvador is advancing negotiations to sell its government-managed Chivo Bitcoin wallet.
- The deal with the International Monetary Fund (IMF) requires the government to stop acquiring Bitcoin.
- President Nayib Bukele has stated the government will continue Bitcoin purchases despite the agreement.
- The IMF’s 2024 loan of $1.4 billion to El Salvador includes a $120 million payment and conditions related to Bitcoin policy.
- As of recent data, the government holds approximately 7,509 Bitcoin, valued at around $659 million.
El Salvador’s government is actively negotiating the sale of its Chivo Bitcoin wallet, according to a statement from the International Monetary Fund’s (IMF) mission chief. The announcement on Monday confirmed advanced talks regarding the disposal of some or all cryptocurrency holdings stored in the wallet.
This development follows a May agreement between El Salvador and the IMF, under which the IMF agreed to disburse $120 million as part of a larger $1.4 billion loan package for 2024. The deal includes conditions requiring the government to cease further Bitcoin acquisitions.
Despite the IMF reporting in July that the government had not purchased Bitcoin since December 2024, El Salvador’s Bitcoin Office announced buying 1,090 Bitcoin valued at about $100 million in November. The conflicting information raises questions about adherence to the loan terms. Details of the agreement also specify that public sector involvement in Bitcoin activities should be limited, private sector Bitcoin usage must remain voluntary, and the government should phase out its role in the Chivo wallet.
El Salvador recognized Bitcoin as legal tender in 2021 and started acquiring Bitcoin in support of that move. According to the country’s Bitcoin Office, the government currently holds approximately 7,509 Bitcoin, worth around $659 million.
Despite the stipulations in the IMF deal, President Nayib Bukele stated in March that the government will continue its Bitcoin purchase strategy, buying at least one Bitcoin daily. How this ongoing commitment will affect the arrangement with the IMF is unclear.
For further details, see the IMF staff statement on El Salvador and the IMF Twitter announcement.
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