El Salvador Secures $1.4B IMF Deal: Bitcoin Purchases Halted, Chivo Wallet Usage Restricted

El Salvador secured a vital $1.4 billion agreement with the International Monetary Fund (IMF), paving the way for greater fiscal stability but imposing strict limitations on its Bitcoin strategy. The deal, part of the IMF’s Extended Fund Facility (EFF), will provide up to $3.5 billion in support over 40 months, including an immediate disbursement of $120 million. However, it also requires El Salvador to halt government-funded Bitcoin purchases, freeze existing reserves held in state-owned wallets, and limit public access to the Chivo wallet by July 2025.