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El Salvador May Ditch Chivo Wallet
In a surprising move, the government of El Salvador has announced its intention to either scrap or sell off its national wallet, Chivo, as part of a $3.5 billion loan agreement with the International Monetary Fund (IMF) and other financial institutions.
The decision comes as a result of negotiations between the IMF and El Salvador, which were deemed necessary in order to secure funding for the country’s economic development. In exchange for the loan, the government has agreed to make certain concessions regarding its Bitcoin adoption and usage.
While Chivo was introduced when El Salvador first adopted Bitcoin as legal tender back in 2021, it seems that this initiative may be coming to an end. According to Stacey Herbert, Director of the Bitcoin Office in El Salvador, the wallet will either be decommissioned or sold off.
This move does not necessarily mean the end of Bitcoin’s use in the country, however. Despite scrapping Chivo, other private sector-operated wallets are expected to continue serving citizens and businesses alike.
It is worth noting that this development comes amidst a backdrop of increasing global financial uncertainty. It appears that El Salvador is taking steps to ensure its economic stability and sovereignty by making concessions to secure funding.
The decision does little to affect Bitcoin’s legal tender status, however. The cryptocurrency will remain in use as a viable means of exchange within the country.
Source: fullycrypto.com
