The International Monetary Fund (IMF) has confirmed that talks surrounding El Salvador’s Chivo Bitcoin wallet are advancing. The discussions focus on increasing transparency and mitigating risks as the country continues to negotiate reforms under its fiscal and digital policy initiatives. The government is also working towards privatizing the Chivo wallet, in line with agreements made under a $1.4 billion Extended Fund Facility (EFF) deal.
The IMF’s latest review of El Salvador’s economic and fiscal reforms highlights significant progress in talks about the Chivo e-wallet. Negotiations for the sale of the government-run Chivo wallet are well advanced, with a focus on reducing government exposure and increasing transparency. Discussions also continue around the Bitcoin project, which has been central to the country’s economic strategy.
When is Bukele going to speak honestly about El Salvador's IMF deal?
“Finally, negotiations for the sale of the government e-wallet Chivo are well advanced, and discussions with regards to the Bitcoin project continue…"
Bitcoin Country? Why are they selling Chivo wallet? pic.twitter.com/F6vdJRa2MW
— Gareth Jenkinson (@gazza_jenks) December 23, 2025
As part of the $1.4 billion Extended Fund Facility (EFF) agreement, El Salvador is committed to unwinding its public participation in the Chivo wallet and privatizing or selling the infrastructure. This move follows criticism of the wallet’s operations, including reports of identity theft and account freezes.
The IMF has emphasized the importance of safeguarding public funds and mitigating risks associated with the wallet. At the same time, the IMF continues to limit the government’s use of taxpayer funds to purchase additional Bitcoin, aligning with the broader agreement to stabilize the economy.
Despite the IMF’s stance on Bitcoin purchases, El Salvador has continued to expand its Bitcoin holdings. The country’s National Bitcoin Office confirmed that El Salvador now holds 7,509 BTC, worth over $65 million. This includes a recent addition of 1,098 BTC, purchased at a value of nearly $100 million.
IMF vs El Salvador on Bitcoin
IMF says El Salvador stopped its Bitcoin experiment. No public buys, Chivo wallet phased out, reserves just internal moves. But the Bitcoin Office says they still buy 1 BTC per day. Holdings now 7,500+ BTC, IMF or not pic.twitter.com/TWVC0ww3Ng
— Telbloggram (@Telbloggram) December 23, 2025
While the IMF had previously urged El Salvador to halt further Bitcoin acquisitions, the country has maintained its policy of accumulating one Bitcoin per day. President Nayib Bukele has been vocal about continuing this policy, despite global criticism and regulatory pressure. This approach reflects the government’s commitment to its Bitcoin strategy, which remains a central part of its economic plans.
El Salvador’s economic performance has exceeded expectations, according to the IMF’s second review of the EFF. The IMF praised the country’s rapid economic expansion, which is driven by high confidence, record remittances, and strong investment. Real GDP growth for 2025 is projected to reach around 4%, surpassing initial forecasts.
JUST IN:
IMF says Bitcoin talks with El Salvador will continue as its economy expands faster than expected.
GDP growth is projected at 4% this year, with “very good prospects” for next year. pic.twitter.com/E1GA3kt6SM
— Bitcoin Archive (@BitcoinArchive) December 23, 2025
This economic progress is seen as a positive outcome of the ongoing structural reforms. The IMF noted that the reforms are helping El Salvador stabilize its economy, even as it continues to navigate the complexities of Bitcoin integration into the national financial system. The country’s increasing Bitcoin holdings, coupled with the privatization of the Chivo wallet, indicate that El Salvador is seeking a balance between innovation and financial stability.
As El Salvador continues its discussions with the IMF, the focus remains on refining its digital and fiscal policies to ensure long-term economic health. The progress on Chivo wallet talks, along with the country’s Bitcoin strategy, underscores the ongoing evolution of El Salvador’s financial landscape.
The post IMF Confirms Chivo Bitcoin Wallet Talks Progress in El Salvador Review appeared first on CoinCentral.
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