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El Salvador May Ditch Chivo Wallet
El Salvador is reportedly considering the discontinuation or sale of its national digital wallet, Chivo, as part of a $3.5 billion loan agreement with international organizations, including the International Monetary Fund (IMF). The move would mark a significant shift in the country’s approach to cryptocurrency and Bitcoin adoption.
The Chivo wallet was initially introduced when El Salvador adopted Bitcoin as legal tender in 2021. However, it now seems that the government has been forced to make concessions regarding its Bitcoin-related policies in order to secure the substantial funding deal.
According to Stacey Herbert, director of the Bitcoin Office in El Salvador, the Chivo wallet will either be decommissioned or sold. This decision is likely linked to demands from the IMF for greater transparency and governance within El Salvador’s financial systems.
Despite the potential departure from its national digital wallet initiative, it appears that El Salvador remains committed to supporting the use of Bitcoin as legal tender. The country has reportedly agreed to continue adding to its reserves, currently holding nearly 6,000 BTC, on a daily basis. Furthermore, other projects related to Bitcoin, including the development of capital markets and educational programs, will also remain unaffected.
The news comes amidst ongoing efforts by international organizations to standardize cryptocurrency regulations and ensure greater transparency in financial transactions. The IMF’s agreement with El Salvador is likely part of these broader efforts to establish a more stable global financial framework.
In conclusion, it appears that El Salvador has been forced to make significant concessions regarding its Bitcoin-related policies, including the potential discontinuation or sale of its national digital wallet.
Source: fullycrypto.com
