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Nayib Bukele made it clear on Friday: El Salvador’s 7,765 bitcoins haven’t moved. Not a single satoshi. The Salvadoran president took to X to dispel rumors circulating in international media for days, claiming that these reserves had not been transferred to a private operator as part of the agreement signed with the International Monetary Fund. At the current exchange rate, this portfolio is worth more than $671 million. That’s significant.
The confusion likely stems from the nature of the agreement itself. In December 2024, El Salvador signed a $1.4 billion loan with the IMF—a lifeline for an economy under pressure. The deal came with a heavy political price: stripping bitcoin of its legal tender status. The country did so in January 2025, just weeks after signing. It’s a dramatic reversal for a government that had made bitcoin adoption a strong identity marker since September 2021, when El Salvador became the first country in the world to grant it such status. Four years of crypto history erased on paper, at least officially.
Bukele, however, kept the bitcoins.
Chivo at the Heart of the Confusion
What Bukele clarified on X is that only the shares of the Chivo wallet were transferred—not the bitcoins themselves. A crucial distinction. The Chivo wallet is the platform El Salvador used to manage its bitcoin transactions nationally, notably for everyday payments and remittances. Transferring the shares of this entity is different from emptying the country’s strategic reserves. Bukele emphasized this, likely because the distinction wasn’t clear in media coverage of the agreement.
The IMF, for its part, stated that the public stake in the Chivo wallet had been significantly reduced. The institution sees this as a transparency measure—less state involvement in the direct management of the tool, more clarity on the country’s digital assets. For the IMF, it’s a condition of trust, not just an administrative formality.
And Bukele sees it as a way to keep control over the bitcoins while respecting the loan terms. It’s still unclear if everyone agrees with this interpretation.
The $140 Million Tranche Hinges on Approval
The IMF announced the release of a $140 million tranche—but it’s conditional. The institution received assurance that future bitcoin purchases would be funded solely by private donations, not public funds. This is a red line for the IMF: no loan money should be used to buy bitcoin. The logic is simple—a country borrowing $1.4 billion to stabilize its economy cannot simultaneously speculate on such a volatile asset with public funds.
But the release of these $140 million is not yet finalized. It requires formal approval from the IMF’s board of directors. This step remains to be completed, and until it’s validated, the money won’t be disbursed. The Salvadoran government is managing its digital assets cautiously in the meantime—at least that’s what official communication suggests.
Bukele also emphasized one point: El Salvador’s strategic bitcoin reserves remain an essential part of the country’s financial strategy. He hasn’t abandoned the idea, even if bitcoin is no longer legal tender. Two distinct things in his mind—and probably in the agreement’s text as well.
The IMF also clarified that no additional bitcoin injections, outside of documented donations, are planned. No bitcoin bought with public funds, therefore. This is a crucial condition for the board to give the green light to the fund’s release.
What makes this situation interesting—and somewhat surreal—is that El Salvador finds itself in a position where it has officially abandoned bitcoin as legal tender but still keeps its reserves, continues to talk about bitcoin strategy, and conditions future purchases on private donations. It’s like the country has reversed course in form but not really in substance. Or at least, Bukele is trying to sell it that way.
International pressure on El Salvador had been strong since 2021. Many economists and institutions criticized the adoption of bitcoin as legal tender, pointing to risks for financial stability and the most vulnerable households. The agreement with the IMF formalized these concerns into concrete requirements.
The IMF’s board of directors still needs to approve the release of the $140 million tranche.
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Frequently Asked Questions
Did El Salvador sell its bitcoins as part of the IMF agreement?
No. Nayib Bukele stated on Friday that El Salvador’s 7,765 bitcoins had not been transferred. Only the shares of the Chivo wallet changed hands, not the bitcoin reserves themselves.
What is the Chivo wallet and why is it central to the debate?
The Chivo wallet is the national platform El Salvador used to manage its bitcoin transactions. The public stake in this tool has been significantly reduced according to the IMF, which is distinct from the country’s strategic bitcoin reserves.
When will the IMF release the $140 million tranche?
Not yet decided. The release of the $140 million depends on formal approval from the IMF’s board of directors, which had not occurred by the publication date of this article.
Why It Matters
El Salvador's decision to retain its substantial Bitcoin reserves amid ongoing negotiations with the IMF underscores the delicate balance the country must strike between fostering innovation in the crypto space and adhering to international financial protocols. This steadfastness may influence market perceptions of Bitcoin's stability as a national reserve asset, particularly in emerging economies, and could either bolster or undermine investor confidence depending on how the situation develops in the context of international financial relations.
