El Salvador, IMF Continue Bitcoin Negotiations Amid Potential Sale of Chivo Wallet

Market Snapshot
According to Atlas21, El Salvador’s government, led by President Nayib Bukele, continues to negotiate with the IMF to secure long-term financing while maintaining its commitment to Bitcoin as legal tender.

The discussions reportedly include the potential privatization or partial sale of the Chivo wallet, the state-operated Bitcoin payments app launched in 2021 to facilitate nationwide crypto adoption.
Sources close to the talks say the IMF has urged the government to improve transparency, compliance, and oversight of Bitcoin-related infrastructure before approving new lending programs.

Background: Bitcoin Nation Meets Global Finance
El Salvador made global headlines in September 2021 when it became the first country to adopt Bitcoin as legal tender, a move designed to boost financial inclusion and reduce remittance costs.
While the initiative initially attracted optimism and foreign investment, it also sparked tension with international institutions wary of crypto’s volatility and its impact on fiscal stability.

The Chivo wallet, developed to onboard citizens into the Bitcoin economy, experienced both success and controversy — praised for its accessibility but criticized for technical glitches and low usage rates among the general population.

By exploring a sale, Bukele’s administration may be seeking to bring in private-sector expertise and increase operational efficiency, while aligning with IMF expectations for sustainable financial governance.

Ecosystem Impact
If the sale proceeds, analysts believe it could mark a new chapter in El Salvador’s Bitcoin journey — transforming Chivo from a state-run pilot into a commercially driven fintech platform.
Such a shift could attract global crypto firms eager to participate in the country’s growing digital economy, especially those specializing in payments, wallets, and blockchain compliance.

At the same time, IMF involvement could lead to a hybrid model, where Bitcoin coexists with stricter monetary oversight and broader integration into global financial systems.

Expert Commentary
Economic analyst Luis Mendoza told Atlas21:

“The IMF’s stance has softened compared to 2022. They recognize El Salvador’s Bitcoin policy isn’t reversing — so now the goal is to ensure it operates within global financial standards.”

Others note that the potential Chivo sale could serve as a symbolic bridge — demonstrating that state-led crypto initiatives can mature into private, regulated fintech ecosystems while maintaining innovation.

Regional & Global Significance
El Salvador’s ongoing talks could set a precedent for other developing nations experimenting with Bitcoin and blockchain-based financial systems.
If successful, the outcome may encourage countries in Latin America and Africa to pursue similar partnerships, balancing decentralization with institutional cooperation.

However, failure to reach an agreement could hinder El Salvador’s access to IMF financing, complicating its fiscal outlook heading into 2026.

Future Outlook
As negotiations progress, observers expect a revised Bitcoin framework emphasizing accountability, transparency, and foreign investment.
If the Chivo wallet transitions to private ownership, it may evolve into a regional hub for digital payments, strengthening El Salvador’s position as a crypto innovation pioneer rather than an outlier.

For both the IMF and Bukele’s government, this phase is about coexistence — finding equilibrium between monetary sovereignty and international stability in the age of digital finance.