Bukele Denies Reports of Bitcoin Reserve Transfer to Private Parties

El Salvador’s President Nayib Bukele has publicly denied reports suggesting the country transferred its national Bitcoin holdings to private entities, calling the claims completely false. The confusion arose following an IMF report detailing changes to the country’s Chivo wallet system, which some interpreted as evidence that El Salvador was quietly reducing its state Bitcoin holdings.

According to Bukele, only equity ownership in Chivo, the government backed Bitcoin payment application, was transferred to a private operator. He clarified that the country’s Strategic Bitcoin Reserve, which holds thousands of Bitcoin worth several hundred million dollars, remains entirely under government control.

Understanding the IMF’s Actual Findings

The IMF’s report, released as part of a combined review of El Salvador’s multibillion-dollar financing program, confirmed that majority ownership and day-to-day control of the Chivo wallet had shifted to a private operator, while the government retained a smaller ownership stake and continued serving as custodian for user funds. The report also confirmed that any recent additions to the country’s Bitcoin reserve came from private donations rather than public funds, and stated that no further government-funded Bitcoin purchases are expected going forward.

Two Separate Systems Behind the Confusion

The misunderstanding largely stemmed from conflating two distinct components of El Salvador’s Bitcoin strategy. Chivo was originally launched as the country’s flagship Bitcoin payment platform when Bitcoin first became legal tender, while the Strategic Bitcoin Reserve represents an entirely separate sovereign stockpile built up over several years. According to Bukele, only the corporate structure behind Chivo changed, with the national Bitcoin reserve remaining untouched.

Ongoing Balancing Act With IMF Requirements

This episode highlights the continued tension between El Salvador’s Bitcoin ambitions and its financial commitments under its IMF program, which previously required the country to revoke Bitcoin’s legal tender status as a condition for financial support. Despite this, the government has continued growing its Bitcoin holdings through private donations, a workaround the IMF has acknowledged without objection as long as public funds remain uninvolved. A new disbursement tied to the program remains pending final approval.