IMF Confirms Chivo Bitcoin Wallet Talks Progress in El Salvador Review: A Watershed Moment for Crypto Adoption?

El Salvador's Bitcoin gamble just got a major international nod—or at least, a serious conversation.

The IMF Walks the Tightrope

Progress on talks around the Chivo wallet isn't just bureaucratic chatter. It signals a reluctant but real engagement from one of the world's most powerful financial institutions with a sovereign crypto experiment. They're not handing out trophies, but they're not slamming the door either.

Why This Review Matters

Forget the price charts for a second. This is about legitimacy. When the IMF sits down to discuss the mechanics of a state-run Bitcoin wallet, it moves crypto from the fringe of 'speculative asset' to the center of 'monetary tool.' It forces traditional finance to engage on crypto's turf—adoption, utility, and financial inclusion.

The Unspoken Pressure

Every discussion about Chivo's infrastructure is a quiet admission: the old playbook is being rewritten. Central banks and treasuries worldwide are watching, knowing that 'too big to ignore' is rapidly becoming the new standard. It's a masterclass in forcing the issue, delivered with the kind of boldness that makes Wall Street risk committees break out in a cold sweat—usually right before they quietly allocate a budget to explore their own digital asset division.

El Salvador didn't ask for permission; it's now negotiating the terms. That's not just progress. It's a precedent.

TLDR

• IMF confirms advanced talks to privatize El Salvador’s Chivo Bitcoin wallet as part of fiscal reforms.
• El Salvador holds 7,509 BTC worth over $65 million, continuing daily Bitcoin acquisitions despite IMF guidelines.
• IMF praises El Salvador’s economic growth, projecting 4% GDP growth for 2025 amid Bitcoin policy reforms.
• El Salvador moves toward selling Chivo wallet, with IMF focusing on transparency and risk mitigation in talks.

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.

Progress on Chivo Wallet Privatization and Bitcoin Project

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.

El Salvador’s Bitcoin Holdings and Continued Acquisitions

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.

Economic Growth and IMF Review

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.