Key Takeaways
- IMF discussions with El Salvador focus on Bitcoin transparency and risk mitigation.
- El Salvador’s economic growth surpassed projections amid ongoing structural reforms and EFF review.
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The International Monetary Fund (IMF) said talks on selling El Salvador’s Chivo e-wallet have made substantial progress, with an emphasis on enhancing transparency, safeguarding public funds, and mitigating associated risks.
Under a $1.4 billion Extended Fund Facility (EFF) agreement with the IMF approved earlier this year, El Salvador is committed to unwinding public participation in the state-run Chivo wallet. Reports say talks are underway to sell or privatize the Chivo infrastructure, removing the government’s direct exposure.
The agreement also limits public sector Bitcoin activity to prevent the use of taxpayer or borrowed funds to buy crypto assets. This effectively bars the government from purchasing additional Bitcoin.
Despite that, El Salvador continues to expand its Bitcoin holdings. According to data from the National Bitcoin Office, the country now holds 7,509 BTC worth over $65 million.
The IMF and El Salvador also reported progress on the second review of the EFF, noting economic expansion at a faster pace than anticipated, driven by high confidence, record remittances, and strong investment.