### El Salvador's Shift: Chivo Wallet Faces Closure in $3.5B IMF Deal đ°
El Salvador is making significant changes to its cryptocurrency strategy as it negotiates a $3.5 billion deal with the International Monetary Fund (IMF). To secure this funding, the government has decided to either sell or shut down its Chivo wallet, which was launched in 2021 to encourage bitcoin adoption across the country. While the government wallet will be discontinued, private bitcoin wallets will remain operational for users.
As part of this new agreement, the IMF has stipulated that acceptance of bitcoin by businesses will be voluntary, and taxes will now only be payable in U.S. dollars, not bitcoin. Despite these adjustments, El Salvador plans to continue purchasing bitcoin for its reserves, currently acquiring one bitcoin per day. With nearly 6,000 BTC valued at around $596 million, the countryâs commitment to bitcoin remains strong, even as it reevaluates its approach. đ