- The state-sponsored Bitcoin wallet Chivo may be shut down as a result of El Salvador’s IMF agreement, although overall BTC support will remain unaffected.
Bitcoin-friendly country As part of the conditions to obtain a $1.4 billion loan from the International Monetary Fund, El Salvador will either sell or sunset its Chivo cryptocurrency wallet and reduce its Bitcoin usage.
The decision was made as part of El Salvador’s deal with the IMF, according to Stacy Herbert, director of the country’s Bitcoin office. Notably, according to Reuters, Chivo’s fate will not affect the nation’s Bitcoin regulations, and the IMF agreement will keep Bitcoin as legal cash.
Around August 2021, El Salvador legalized Bitcoin nationwide and launched Chivo. President Bukele’s ambitious Bitcoin program was advanced by Chivo, the sovereign cryptocurrency wallet.
Chivo at the time offered BTC prizes to citizens who signed up, however the cryptocurrency wallet experienced a number of problems. At least two hacker attacks against Chivo resulted in the release of the wallet’s code in April 2024 and the exposure of private user information.
El Salvador’s wager on Bitcoin
El Salvador is still a pro-BTC powerhouse even though Chivo is probably going to shut down. The nation was the first to accept Bitcoin as legal cash and use public funds to buy it under President Bukele.
President Bukele has presided over a $270 million investment in the trillion-dollar asset since it authorized Bitcoin in September 2021.
At the time of writing, El Salvador had more than $632 million in Bitcoin, including $362 million in unrealized profits from its wager. A significant turning point in the history of cryptocurrency was reached when Bitcoin’s ascent past $100,000 spurred expansion in El Salvador’s bond markets. For the first time, sovereign-issued debt was affected by Bitcoin price trends.
After years of crypto skepticism, several countries, like the U.S. and Brazil, have now declared preparations to investigate Bitcoin reserve legislation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
