El Salvador’s agreement with the IMF could bring down the country’s state-backed Bitcoin wallet Chivo, but not general BTC support.
Bitcoin-friendly country El Salvador will suspend or sell its Chivo crypto wallet as it scales back Bitcoin (BTC) activity as part of the terms of securing a $1.4 billion loan from the International Monetary Fund.
Stacy Herbert, director of El Salvador’s national Bitcoin office, said the decision was part of the agreement with the IMF. Notably, Chivo’s fate will have no impact on BTC laws in the country and Bitcoin will continue to be available as legal tender under the IMF deal, according to Reuters.
El Salvador launched Chivo in August 2021, around the same time it legalized Bitcoin nationwide. Chivo served as a sovereign crypto wallet to advance President Bukele’s ambitious BTC agenda.
At the time, citizens received BTC rewards for signing up with Chivo, but the crypto wallet suffered several setbacks. In April 2024, hackers attacked Chivo at least twice, exposing sensitive user data and leaking the wallet’s code.
El Salvador’s Bitcoin bet
Despite the likely closure of Chivo, El Salvador remains a pro-BTC powerhouse. Under President Bukele, the country was the first to adopt BTC as legal tender and provide government funding for Bitcoin purchases.
Since September 2021, when BTC was legalized, President Bukele has overseen a $270 million investment in the trillion-dollar asset.
El Salvador held over $632 million worth of BTC at press time, including $362 million in unrealized profits from its Bitcoin bet. BTC’s rise above $100,000 sparked a growth in El Salvador’s bonds…
