The International Monetary Fund praises El Salvador’s economic growth as discussions over the Bitcoin strategy continue.
On December 22, the International Monetary Fund (IMF) announced that talks regarding El Salvador’s Bitcoin initiative are ongoing, with a specific focus on “enhancing transparency, safeguarding public resources, and mitigating risks.” The international financial institution is also engaged in advanced negotiations for the sale of the government-run e-wallet Chivo.
The Chivo wallet has been at the center of numerous controversies. Users have reported widespread issues related to identity theft, fraud, and technical malfunctions, which led to the suspension of many accounts.
In 2023, one of the wallet’s lead developers had suggested shutting down the application, citing the controversies that have surrounded it since its launch. In 2024, El Salvador secured a $1.4 billion loan from the IMF after the adoption of BTC had created tensions in the country’s relationship with the international organization.
In its December 22 update, the IMF stressed that future discussions on El Salvador’s Bitcoin strategy will focus on elements such as operational transparency and the mitigation of financial risks.
Despite concerns surrounding the Bitcoin project, the IMF expressed appreciation for the Central American nation’s economic performance, describing growth as “expanding at a faster than anticipated.”
According to projections, real GDP growth is expected to reach around 4% this year, with similarly positive prospects for the following year. These figures emerged during the second review of the 40-month Extended Fund Facility (EFF) program granted to the Central American country.
