The head of the International Monetary Fund (IMF) for El Salvador confirmed that negotiations are advancing for the potential sale of the country’s Chivo Bitcoin wallet.

In a statement issued on Monday, the IMF indicated that the El Salvador government is still in discussions regarding its Bitcoin (BTC) initiative, stating that “negotiations for the sale of the government e-wallet Chivo are well advanced.” This development implies the government might be ready to sell some or all of its cryptocurrency holdings in the Chivo wallet.

Source: IMF
Source: IMF

This announcement came after a deal from May in which the IMF committed to providing $120 million as part of a $1.4 billion loan agreement for 2024. Under this agreement, the government was required to halt its acquisition of Bitcoin.

There are questions regarding whether El Salvador is following through on the agreement’s stipulations. In July, it was reported by the IMF that the government had not bought any BTC since December 2024; however, the Bitcoin Office in El Salvador continues to announce cryptocurrency purchases, including 1,090 Bitcoin worth approximately $100 million made in November.

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According to the terms disclosed in the IMF-El Salvador agreement, public sector involvement in BTC-related economic activities is to be limited, acceptance of Bitcoin by the private sector is voluntary, and involvement in managing the Chivo wallet is to be reduced. Cointelegraph reached out to the IMF for comments but had yet to get a response at the publication time.

El Salvador officially recognized Bitcoin as legal tender in 2021 and started acquiring it under a strategy largely advocated by President Bukele. Current data from the Bitcoin Office reveals that the government holds 7,509 Bitcoin, valued at approximately $659 million at the time of this report.

‘It’s not stopping,’ says Bukele on Bitcoin buys

Despite the alleged agreement with the IMF, President Bukele declared in March that the government would maintain its Bitcoin investment strategy, buying at least one BTC daily. It’s uncertain how this statement from Bukele could influence the IMF deal.