El Salvador is negotiating a $3.5 billion deal with the International Monetary Fund (IMF), and as part of the agreement, the government-issued Chivo wallet will be sold off or wound down. However, other private company-operated bitcoin wallets will continue serving the country. The IMF also announced that bitcoin acceptance by the private sector will be voluntary, and taxes will only be paid in U.S. dollars, not bitcoin. Despite these concessions, El Salvador will continue to add bitcoin to its reserves and maintain its legal tender status. The IMF has expressed concerns about El Salvador's bitcoin initiatives before but stated that the potential risks will be diminished in accordance with IMF policies. The IMF will provide $1.4 billion in funds, and the rest will come from other financial institutions.



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