El Salvador’s President Closes Bitcoin Animal Hospital: Controversy and Impact

Jakarta, Pintu News – The government of El Salvador has just announced the closure of the Chivo Pets animal hospital, which was previously built using surplus funds from the country’s Bitcoin trust fund. President Nayib Bukele announced this decision following reports of alleged animal neglect at the San Salvador government-run shelter.

Chivo Pets, which operated for three years, stated in a Facebook post that it would officially cease operations from 00:00. President Bukele also announced the dissolution of the Institute of Animal Welfare (IBA) and Polipet-a specialized police unit for animal protection-for the same reason. He emphasized that all employees of both institutions would be dismissed as a form of accountability for negligence.

Bitcoin and Public Funds in the Chivo Pets Project

Chivo Pets was established as part of the El Salvador government’s initiative to capitalize on the benefits of Bitcoin trust funds. A total of IDR 65.2 billion (equivalent to $4 million) was allocated for the construction of this hospital, which is claimed to provide services 24 hours a day and can treat 200 animals at a cost of only IDR 4,075 (equivalent to $0.25) per day.

However, the project now joins a long list of failed Bitcoin initiatives in El Salvador. Previously, projects such as Bitcoin City, NFT Casino, Chivo Wallet, Volcano Bonds, as well as LaGeo crypto mining operations also faced major obstacles. This raises questions about the effectiveness of the crypto-based economic strategy implemented by the Bukele government.

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El Salvador’s relationship with Bitcoin and the IMF

Despite facing various challenges in the Bitcoin project, El Salvador continues to accumulate this crypto asset. Since 2022, the country has started buying one Bitcoin BTC->Current BTC PriceRp 0Market CapRp 0Trading VolumeRp 0Circulating SupplyRp 0 every day, according to Bukele’s statement on social media. To date, El Salvador has reportedly accumulated more than 6,105 BTC, which is currently worth more than IDR 8.3 trillion ($511 million equivalent).

On the other hand, El Salvador’s relationship with the International Monetary Fund (IMF) has been strained by the country’s Bitcoin policy. In December 2024, the government reached a loan agreement worth IDR 22.8 trillion ($1.4 billion equivalent) with the IMF. As a condition of the loan, El Salvador agreed to reduce the public sector’s involvement in the use of Bitcoin and change its legal policy regarding digital assets.

Future Challenges and Prospects

Although the IMF has urged El Salvador to stop buying Bitcoin, the government has continued with this strategy. Bukele even called the pressure from the IMF a mere “grievance”. As of March 2025, the country continues to buy Bitcoin despite the international institution’s ban.

Amid criticism and challenges, El Salvador is starting to attract the attention of major crypto companies. Bitfinex Derivatives and Tether have announced moving their operations to El Salvador, making the country one of the new crypto hubs in the world. This move shows that despite facing regulatory and economic obstacles, El Salvador is maintaining its vision as a pro-crypto country.

Also Read: Litecoin (LTC) Hit a Record High, Will the Price Surge? (7/3/25)

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Reference

• Cryptopolitan. El Salvador Shuts Down Bitcoin Pet Hospital. Accessed March 10, 2025.
• Featured Image: en.as.com