According to the International Monetary Fund (IMF), El Salvador has significantly reduced public participation in its Chivo e-wallet as part of adjustments to the government's involvement in Bitcoin. The IMF noted that efforts are also underway to improve transparency regarding the nation's Bitcoin holdings across various wallets.
Changes to Chivo and Bitcoin Accumulation
Majority ownership and operational control of the Chivo e-wallet have been transferred to a private operator. Meanwhile, the government retains a minority stake and maintains responsibility for holding customer assets. Documentation provided by El Salvador demonstrated that Bitcoin acquired since the first review of its IMF program originated from private donations, with no public funds utilized for the purchases.
IMF staff and Salvadoran authorities reached a staff-level agreement incorporating measures to strengthen the governance and risk management of crypto assets held within the public sector. The agreement also includes plans to update the country's digital-asset legal, regulatory, and supervisory frameworks. Furthermore, the IMF stated that no additional Bitcoin accumulation beyond the documented donations is anticipated as the country implements reforms under an Extended Fund Facility arrangement.
Economic Outlook and Background
Mr. Torres, the IMF Mission Chief for El Salvador, reported that the national economy expanded beyond expectations, with real GDP growth projected to reach 4.5% for the year. This economic outlook is supported by investment, consumer spending, remittances, tourism, and capital inflows, alongside improved security and heightened investor confidence.
El Salvador previously became the first nation to adopt Bitcoin as legal tender, a policy that faced ongoing opposition from the IMF. During negotiations for a $1.4 billion IMF program, the country agreed to limit public-sector involvement in Bitcoin, make private-sector acceptance voluntary, and scale back elements of its cryptographic framework.
Data from the National Bitcoin Office’s reserve tracker indicates that El Salvador holds approximately 7,764 BTC, valued at roughly $630 million.
