Negotiations between the International Monetary Fund and El Salvador have advanced around the country’s Bitcoin policy and a potential sale of the state-run Chivo e-wallet, in talks linked to a pending Extended Fund Facility (EFF) sized between $1.14 billion and $1.4 billion. The core trade-off on the table is IMF financing and a 40-month reform program in exchange for tighter transparency and a lower state footprint in crypto-related volatility.
What the IMF wants and what El Salvador has already changed
The IMF is discussing a 40-month EFF designed to support reforms and financial stability. A central IMF priority is to strengthen safeguards for public resources while reducing risks connected to the government’s Bitcoin strategy. In that context, El Salvador amended its Bitcoin law so merchant acceptance is optional, a policy shift framed as lowering systemic exposure.
Gradually, then suddenly. https://t.co/MWP0avqlDE pic.twitter.com/hYYONaRLcI
— Nayib Bukele (@nayibbukele) December 22, 2025
The IMF’s messaging also points to a macro backdrop it views as constructive. The IMF notes “robust” performance and projects real GDP growth of around 4% for 2025, linking that outlook to steady remittances and rising local investment. In parallel, the government is framing a 2026 budget that reduces the deficit while protecting social spending, aligning fiscal planning with the program’s stability objectives.
Chivo’s future is a focal point in the negotiations rather than a side issue. The prospective sale or privatization of the Chivo e-wallet is described as a central condition, with the IMF pressing for clearer governance and risk controls. Chivo has been credited with expanding access through fee-free Bitcoin and dollar transactions, but the text also flags operational concerns: reports of identity theft, fraud, and software bugs that froze accounts—issues that raise obvious governance and consumer-protection questions in an IMF-led program.
🇸🇻EL SALVADOR SECURES $3.5 FUNDING DEAL
➡️Bitcoin remains legal tender
➡️El Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve
➡️Bitcoin capital markets will continue to be built; for example, the recent tokenized issuance…— Stacy Herbert 🇸🇻🚀 (@stacyherbert) December 19, 2024
The most sensitive gap is still the government’s Bitcoin purchasing narrative. The IMF position is that public Bitcoin acquisitions stopped after a December 2024 agreement, while Salvadoran officials assert ongoing buying activity and publish conflicting reserve figures. The text highlights multiple snapshots—claims of about 7,509 BTC after a reported $100 million purchase versus other figures such as 6,190.18 BTC and roughly 30 BTC added in the last 30 days—plus President Nayib Bukele’s stated intent to keep buying about one BTC per day. Those inconsistencies go directly to what the IMF is trying to tighten: standardized reporting, verifiable disclosures, and reduced ambiguity around sovereign crypto exposure.
The negotiation is about moving from posture to enforceable controls. Whether the EFF proceeds, and whether Chivo is privatized or phased out, will determine how quickly El Salvador can convert its Bitcoin policy into an IMF-compatible framework for transparency and risk containment. For market participants, the practical watchpoints are straightforward: the finalized EFF terms, any hard commitments on Bitcoin purchases, and a definitive decision on Chivo’s ownership and operating model.
