El Salvador is in active discussions to sell its state-run Chivo wallet to private operators. The International Monetary Fund (IMF) disclosed the potential divestment as part of ongoing negotiations regarding the nation’s credit facility.
This marks a structural pivot for President Nayib Bukele. The government is moving to limit its direct liability in the crypto infrastructure layer while maintaining Bitcoin as legal tender.
Fiscal Risk Mitigation
The Chivo wallet launched in September 2021. It served as the primary onboarding tool for millions of Salvadorans, incentivized by a $30 signup bonus. Technical glitches and identity theft reports plagued the initial rollout. Usage dropped sharply once citizens cashed out the initial incentives.
The IMF has repeatedly flagged the wallet as a budgetary risk. Privatizing the platform removes the government from the role of direct service provider. It shifts the operational costs and custody risks to the private sector. This aligns with the lender’s requirements for greater fiscal discipline and transparency in El Salvador’s balance sheet.
“Discussions are underway to transfer the management of the Chivo wallet to a private operator,” the IMF staff noted in the report.
Market Reaction
The disclosure had little impact on spot markets. Bitcoin (BTC) held the $96,000 range following the news. Traders have largely decoupled El Salvador’s internal adoption metrics from global price action. The sale suggests the “Bitcoin City” vision is maturing into a more traditional public-private model rather than a state-monopolized utility.
