El Salvador in Advanced Talks to Sell State-Run Chivo Bitcoin Wallet Amid IMF Negotiations

The International Monetary Fund (IMF) confirmed on December 23, 2025, that El Salvador is in “well advanced” negotiations to sell its government-operated Chivo Bitcoin wallet, as part of ongoing discussions surrounding the country’s cryptocurrency policies.

This development stems from a 2024 IMF loan agreement that included provisions to limit public sector Bitcoin engagement and wind down the Chivo wallet. However, President Nayib Bukele has publicly stated that the government’s Bitcoin purchases will continue unabated, highlighting tensions between international financial commitments and national strategy. El Salvador’s Bitcoin holdings stand at 7,509 BTC—valued at approximately $659 million—as the nation navigates its pioneering role in adopting cryptocurrency as legal tender.

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Details of the IMF Statement and Chivo Wallet Sale Talks

The IMF mission chief for El Salvador noted that authorities are progressing with the sale of Chivo, the state-backed digital wallet launched in 2021 to facilitate Bitcoin transactions. Separate discussions address the government’s ongoing Bitcoin acquisitions.

• Sale Status: Negotiations “well advanced.”
• IMF Loan Context: Part of a $1.4 billion agreement with conditions on reduced public BTC involvement.
• Chivo Role: Originally promoted for everyday Bitcoin use, including a $30 airdrop to citizens.
• Current Holdings: 7,509 BTC (~$659M at current prices).

The IMF emphasized voluntary private sector Bitcoin acceptance and confined public engagement under the deal.

Bukele’s Defiance: Bitcoin Purchases “Not Stopping”

President Bukele has maintained a firm stance on Bitcoin accumulation:

• Daily Buys: At least 1 BTC per day since March 2025 announcement.
• Recent Activity: Bitcoin Office reported purchases, including significant November adds.
• Public Position: “It’s not stopping”—directly countering IMF-aligned restrictions.

This approach reflects Bukele’s vision of Bitcoin as a national reserve asset, despite international pressure.

Background on El Salvador’s Bitcoin Strategy

El Salvador became the first country to adopt Bitcoin as legal tender in September 2021, launching Chivo wallet to drive adoption. The government has consistently bought BTC during dips, building holdings from zero to over 7,500 coins.

• Legal Tender Since: 2021.
• Chivo Launch: Aimed at financial inclusion and remittances.
• Treasury Growth: From experimental buys to multi-billion valuation.
• Challenges: Volatility, adoption hurdles, IMF concerns over fiscal risks.

The wallet sale would mark a partial retreat from direct public infrastructure while preserving private sector freedom.

Implications for El Salvador and Global Crypto Adoption

The potential Chivo divestment could:

• Ease IMF Relations: Unlock further funding tranches.
• Shift Focus: From state wallet to private solutions.
• Signal Maturity: Move toward voluntary, market-driven adoption.
• Bukele’s Legacy: Balance Bitcoin advocacy with pragmatic governance.

Globally, it highlights tensions between sovereign crypto experiments and international financial institutions.

In summary, the IMF’s December 23, 2025, confirmation of advanced talks to sell El Salvador’s Chivo Bitcoin wallet—amid President Bukele’s insistence on continued BTC purchases—illustrates ongoing negotiations under the 2024 loan agreement. With holdings at 7,509 BTC (~$659M), the nation navigates its trailblazing legal tender status. Monitor official statements from the IMF and El Salvador’s Bitcoin Office for updates on this evolving intersection of national policy and cryptocurrency.