The International Monetary Fund (IMF) agreed to provide a $1.4 billion loan to the government of El Salvador. This loan will support the Central American country’s reform agenda and is subject to approval by the IMF Board of Governors.
Credit as Bitcoin Bribe
The IMF cash is aimed at strengthening El Salvador’s reform program. In addition, a total of 3.5 billion dollars of financing is expected to be provided from the World Bank and other international financial institutions with this loan.
The government of El Salvador has agreed to limit its cryptocurrency efforts as part of the deal, the United Nations financial agency said. Bitcoin in line with fund policies $94,806.6 The possible risks of the project will be significantly reduced. Legal reforms will make private sector acceptance of Bitcoin optional. Bitcoin-related economic activities and transactions for the public sector will be limited. Taxes will only be payable in US dollars, and the government’s involvement in the Chivo crypto wallet will be phased out.
“Bitcoin is legal tender. “El Salvador will continue to purchase bitcoin for the Strategic Bitcoin Reserve, and this process may accelerate.” – Stacy Herbert, El Salvador Bitcoin Office Director
Stacy Herbert, Director of El Salvador’s Bitcoin Office, announced that the country does not plan to slow down Bitcoin purchases.
“Bitcoin is legal tender. “El Salvador will continue to purchase bitcoin for the Strategic Bitcoin Reserve, and this process may accelerate.” – Stacy Herbert
However, all this does not change the fact that this bribe was provided in return for the concessions made regarding Bitcoin. Since the first day, the IMF has been making statements to deter countries from purchasing BTC and integrating it into their economies. The fact that El Salvador was able to take a step back, even partially, will be seen as a great success by the IMF.
Control of Digital Assets and Transparency
By increasing the transparency, regulation and supervision of digital assets, it is aimed to protect financial stability, consumer and investor protection and financial integrity.
This loan provided by the IMF will support El Salvador’s economic reforms and strengthen the country’s financial stability. Loan approval is subject to final approval by the IMF Board of Directors.
This agreement made by El Salvador with the IMF draws attention with the limitations it imposes on cryptocurrency policies. The government’s decision to continue Bitcoin purchases strikes a balance with the IMF’s lending conditions. This development reveals how it will shape the country’s economic strategies and digital asset policies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
