El Salvador Clarifies Bitcoin Reserve Status Amid IMF Review

El Salvador's President Nayib Bukele has clarified that the country's Bitcoin reserves are still in government hands, following reports of a potential transfer to private parties. The confusion arose from an International Monetary Fund (IMF) staff-level agreement, which mentioned the transfer of majority ownership and operational control of the Chivo wallet to a private operator.

The Chivo wallet is El Salvador's flagship Bitcoin payment app, launched in 2021 alongside the country's decision to make Bitcoin legal tender. However, the Strategic Bitcoin Reserve, which holds around 7,764 BTC valued between $618 million and $632 million, remains intact and under government control.

Bukele stated that only equity shares in the Chivo wallet were transferred to a private operator, not the country's sovereign Bitcoin holdings. The IMF review noted that any additional Bitcoin acquired since the last review came through private donations, not public funds, and no further accumulation of Bitcoin is expected from public sources.