The Bitcoin Dream of El Salvador is still unfinished amidst plans to sell or close Chivo Wallet.

A cloud of suspicion hangs over El Salvador’s Bitcoin dream following President Nayib Bukele’s privatization or closure plan for the Chivo cryptocurrency wallet, which he created and supported when BTC became legal tender in the country in 2021. According to a post on Stacy Herbert’s social media platform X, the Director of the National Bitcoin Office, the government has decided to sign a $1.4 billion loan agreement with the International Monetary Fund (IMF) to address the controversial issues related to El Salvador’s Bitcoin dream.

El Salvador’s Bitcoin dream is called into question as Chivo faces closure While asserting that Bitcoin remains legal tender in this country, Hebert said the Chivo digital wallet ‘will be sold or closed’. However, she did not disclose the number of people still using this digital wallet, which has been in use since September 2021, when the government allowed Salvadorans to pay with Bitcoin. El Salvador’s Bitcoin dream made headlines in 2021 when the country announced the establishment of Bitcoin as a legal tender in the Central American country alongside the U.S. dollar, presumably with the aim of reviving its remittance-dependent economy. While a 2023 survey by the Central American University found that more than 88 percent of Salvadorans do not use Bitcoin, Hebert reiterated that “El Salvador will continue to buy Bitcoin (possibly at a faster rate) for its Strategic Bitcoin Reserve.” Chivo cryptocurrency wallet offers a $30 discount upon launch. According to Bukele, the chief architect of the Bitcoin dream in El Salvador, storing Bitcoin is “the least unpopular measure this government has taken”. However, according to the National Bitcoin Office, El Salvador owns 5,969 bitcoins worth about $582 million. The Chivo cryptocurrency wallet has become the world’s first government-operated digital wallet, aimed at enhancing the adoption of cryptocurrency. In the early days, the government offered a $30 BTC bonus to anyone who downloaded and used the Chivo cryptocurrency wallet. Unfortunately, there was then a widespread fraud and identity theft incident, with many reports of Chive wallet-related issues resulting in the freezing of thousands of accounts. Furthermore, most people who downloaded the Chivo wallet immediately converted this $30 to fiat currency, and that’s all they had to do with Bitcoin. IMF opposes El Salvador’s Bitcoin dream The International Monetary Fund (IMF), a global lending organization, has continuously opposed El Salvador’s Bitcoin dream since its establishment. Although acknowledging that the risks associated with BTC adoption may have diminished after its widespread adoption by businesses worldwide, the global lending organization declares that ‘The inherent risks of the Bitcoin project will significantly decrease according to the Fund’s policies.’ While Bitcoin has made headlines for trading at over $108,000 in recent weeks, the IMF maintains that “Regulatory reform will make private sector acceptance of Bitcoin voluntary. For the public sector, participation in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be restricted.” Conclusion The new loan agreement that El Salvador has signaled the closure or privatization of its Chivo crypto wallet is aimed at supporting the country’s fledgling economy. The global lender has repeatedly opposed Bukele’s pro-crypto policies, claiming that they could become barriers to expanding financial support. Despite all the warnings, Bukele celebrated on social media as BTC rallied following Donald Trump’s victory in the most recent U.S. cautiousness election. When Bitcoin reached $100,000 in early December, Bukele declared that the value of the country’s cryptocurrency holdings had doubled. As the rest of the world and especially the cryptocurrency community celebrated the prospect of a President supporting digital currency taking office in the White House, observers were uncertain about the trajectory that El Salvador’s Bitcoin dream would follow. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)