El Salvador Denies Transfer of Strategic Bitcoin Reserve to Private Entity

El Salvador's President Nayib Bukele has denied reports that the country transferred its Strategic Bitcoin Reserve to a private entity. This comes after the International Monetary Fund (IMF) reached a preliminary agreement with El Salvador, which will unlock $140 million in additional funding under a broader $1.4 billion financing program.

The denial was made after it was reported that the IMF had agreed to changes involving El Salvador's state-backed Chivo wallet. The fund stated that majority ownership and operational control of the wallet had been transferred to a private operator, but the government continues to hold a minority stake and retains responsibility for the custody of customer assets.

Bukele clarified that only shares in the Chivo wallet were transferred, and not the country's Bitcoin holdings. He stated that 'the only thing that was transferred were Chivo's shares … and NOT the Strategic Bitcoin Reserve.'