El Salvador in Advanced Negotiations to Sell State Crypto Wallet, IMF Says
Authorities in El Salvador are proceeding with advanced negotiations to sell the government’s Chivo Bitcoin wallet, according to a statement from the International Monetary Fund’s mission chief for the country. This confirms earlier speculation about a potential divestment.
The IMF disclosed on Monday that discussions between El Salvador and fund officials concerning the national Bitcoin project are continuing, with negotiations for the Chivo e-wallet sale being “well advanced.” This indicates a significant potential shift in the state’s management of its cryptocurrency assets.
This process follows a financial agreement reached in May, where the IMF approved a $120 million payment as part of a $1.4 billion loan program for 2024. Under this deal, the Salvadoran government agreed to stop its purchases of Bitcoin.
Compliance with these conditions appears ambiguous. Despite an IMF report from July stating no official BTC buys had taken place since late 2024, El Salvador’s Bitcoin Office has reported several acquisitions since, including a purchase of 1,090 Bitcoin in November worth approximately $100 million.
The loan agreement terms require limiting public sector Bitcoin engagement, ensuring voluntary private sector adoption, and scaling down the state’s role in Chivo. In response to an inquiry, an IMF spokesperson confirmed the sale negotiations are ongoing but could not comment on specifics.
