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El Salvador has run into a snag with the IMF over its handling of bitcoin through Chivo Wallet. According to a new compliance review tied to a $1.4 billion credit facility approved in February, the country failed to meet voluntary bitcoin non-accumulation targets—something the IMF now attributes to how Chivo manages liquidity.
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In its latest report, the IMF noted that fluctuations in bitcoin deposits and Chivo’s internal handling of those assets led to minor breaches of the non-accumulation terms. When users sell bitcoin in the Chivo Wallet, the platform does not sell off the actual BTC—it simply fulfills the transaction internally. As a result, the Salvadoran government ends up holding more bitcoin over time.
“Fluctuations in Chivo clients’ deposits denominated in bitcoin and Chivo’s liquidity management policy, which does not adjust to such fluctuations, led to minor breaches in conditionality,” the IMF wrote.
To track bitcoin-related activities, the IMF uses signed statements from all hot and cold wallet addresses, along with a monitoring tool to follow daily changes in Chivo Wallet deposits.
To address the issue, Salvadoran officials have already laid out a plan to wind down Chivo operations this month. The proposal also includes liquidating the Fidebitcoin fund, which was set up to handle BTC-to-USD exchanges for the state-backed wallet.
The IMF noted that “corrective actions have been taken to establish a sufficient buffer to mitigate the risk of future breaches prior to the planned sale of Chivo.”
The measures are intended to bring the country back in line with the voluntary commitments it agreed to as part of the IMF credit facility.
While the IMF flagged the Chivo Wallet’s impact on bitcoin holdings, it did not address El Salvador’s separate and ongoing accumulation program led by the Bukele administration. That initiative continues to operate independently of Chivo and the current compliance issue.
According to data from El Salvador’s National Bitcoin Office (ONBTC), the country now holds more than 6,239 BTC—worth over $740 million at the current market value.