El Salvador Secures $3.5 Billion IMF Financing Package After $1.4 Billion Loan Agreement and Chivo Wallet Phase-Out

Dec 18, 2024, 08:55 PM

El Salvador has secured a $3.5 billion financing package from the International Monetary Fund (IMF) following a four-year negotiation period. This agreement, which is subject to approval by the IMF Executive Board, comes after President Nayib Bukele's administration agreed to make the acceptance of Bitcoin voluntary for the private sector and to phase out the government's Chivo wallet, which was initially designed to facilitate Bitcoin transactions. The IMF's deal aims to support the country's economic reforms and mitigate risks associated with Bitcoin. Bukele's earlier decision to invest in Bitcoin had faced criticism from various quarters, including the political class and the IMF, but recent developments indicate a shift in approach toward cryptocurrency regulation in El Salvador.