Bukele Denies Transfer of Strategic Bitcoin Reserves

El Salvador President Nayib Bukele has denied that his country transferred its strategic Bitcoin reserves to a private operator as part of a loan agreement with the International Monetary Fund (IMF). The IMF announced a preliminary deal with El Salvador on Thursday, unlocking $140 million in fresh funding as part of an austerity and reform program. According to the IMF, majority ownership and operational control of El Salvador's Chivo wallet have been transferred to a private operator, while a minority stake and custodial responsibilities for customer assets remain with the government. Bukele responded on X, stating that 'the only thing that was transferred were Chivo's shares ... and NOT the Strategic Bitcoin Reserve.'

The IMF had determined that El Salvador's continued Bitcoin purchases were being financed by private donations rather than public funds. The organization reported that public participation in the Chivo wallet has been substantially unwound, and efforts are underway to enhance the transparency of Bitcoin holdings.