Talks between the International Monetary Fund (IMF) and El Salvador over the country’s Bitcoin strategy are still ongoing, with discussions focused on improving transparency, protecting public funds, and reducing financial risks.
In a recent update, the IMF said negotiations continue around El Salvador’s Bitcoin project, including advanced discussions over the possible sale of the government-run Chivo wallet. The Chivo e-wallet, launched as part of the country’s Bitcoin rollout, has faced persistent criticism since day one, with users reporting identity theft, fraud, technical glitches, and frozen accounts.
Last year, one of the architects behind Chivo publicly suggested the wallet should be shut down altogether because of the controversy surrounding its launch.
IMF Loan and Bitcoin Tensions
El Salvador’s relationship with the IMF has been strained since the country adopted Bitcoin as legal tender. In 2024, however, the two sides reached a compromise, with El Salvador securing a $1.4 billion IMF loan under a 40-month Extended Fund Facility.
At the time, Stacy Herbert, director of El Salvador’s National Bitcoin Office, said the Chivo wallet would be phased out, while private-sector Bitcoin wallets would continue to operate in the country.
IMF Acknowledges Economic Progress
Despite its concerns around Bitcoin, the IMF acknowledged that El Salvador’s economy is performing better than expected. The agency said real GDP growth is on track to reach around 4% this year, with strong prospects heading into next year.
The update forms part of the IMF’s second review of El Salvador’s Extended Fund Facility agreement.
President Nayib Bukele reacted to the developments in his usual understated style, posting on X:
“Gradually, then suddenly.”
Is El Salvador Still Buying Bitcoin?
Yes — and at a steady pace.
Last month, El Salvador added 1,098 BTC to its national reserves, worth nearly $100 million at the time, pushing its total holdings to 7,509 BTC. According to official data, the latest purchase was reported on December 22.
The country has continued its policy of buying one Bitcoin per day, sticking with the strategy even during periods of market volatility.
This approach appears to conflict with the IMF’s earlier position. In May, the fund said efforts would continue to ensure El Salvador does not accumulate additional Bitcoin. President Bukele, however, has made it clear the policy isn’t changing.
“No, it’s not stopping,” Bukele said in March. “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.”
