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IMF, El Salvador Advance Talks to Sell or Wind Down Chivo Wallet

The second EFF review hinges on transparency safeguards with a defined exit for the state wallet.

Overview

  • An IMF staff statement on Dec. 23 said negotiations to privatize or wind down the government-run Chivo wallet are well advanced within the program review.
  • The review seeks a staff-level agreement that ties further financing to stronger transparency, protection of public resources, and mitigation of Bitcoin-related risks.
  • Authorities report progress on financial-sector reforms, including stronger bank resolution tools, Basel III liquidity standards, and updated AML/CFT rules, alongside improving fiscal metrics.
  • El Salvador continues daily Bitcoin purchases despite IMF pressure to limit public exposure, with holdings near 7,500 BTC and a purchase of roughly 1,100 BTC in November.
  • The IMF projects real GDP growth around 4% for 2025 and says close engagement will continue as decisions on Chivo and broader policy commitments are finalized.