El Salvador Moves to Sell Chivo Platform Amid IMF Loan Terms

El Salvador is moving forward with plans to sell its Chivo Bitcoin wallet, with the International Monetary Fund confirming that negotiations are progressing. This step aligns with conditions set under a recent financial agreement with the fund.

The IMF’s mission chief for El Salvador released a Monday statement noting continued discussions on the country’s Bitcoin project. The fund explicitly stated that “negotiations for the sale of the government e-wallet Chivo are well advanced,” signaling a concrete step toward divestment.

This action follows a May agreement where the IMF provided $120 million as part of a larger $1.4 billion loan package for 2024. Incorporated into this deal was a government pledge to stop acquiring Bitcoin.

Whether El Salvador is fully complying is open to interpretation. The IMF’s July report claimed no state BTC purchases after December 2024, yet the national Bitcoin Office has reported multiple buys since then, including 1,090 Bitcoin in November worth about $100 million.

The loan terms mandate limiting public Bitcoin exposure, ensuring voluntary private adoption, and unwinding state involvement with Chivo. An IMF spokesperson, contacted for comment, affirmed the sale talks are ongoing but provided no transaction specifics.