There have been worrying developments in the Bitcoin sector, as El Salvador, which used to support Bitcoin, announced its decision to limit its use at the government level. 😱💰
A disturbing agreement with the International Monetary Fund 🌍💼
In addition, an agreement was reached between El Salvador and the International Monetary Fund (IMF), which is known for its anti-Bitcoin stance. The IMF is an international financial institution that provides financial assistance and policy advice to member countries to help them overcome economic crises. 📉💸
On December 18, 2024, the International Monetary Fund announced details of a loan agreement with El Salvador, which includes scaling back its participation in the national digital wallet for Bitcoin, known as “Chivo.” This means that the focus on Bitcoin development in the public sector will decline, leaving Bitcoin-related economic activity limited to private companies only. 🏦🔒
Financial support for El Salvador 💵
By adhering to the terms of the agreement, El Salvador will receive $1.4 billion from the IMF over the next 40 months. The IMF said that “the potential risks of the Bitcoin project will be significantly reduced in accordance with the Fund’s policies.” 🛡️📊
Effects on Bitcoin Price 📉
Following the news, Bitcoin's trading price has dropped by 5% in the last few hours, with the current price reaching $99,676. 😢💔
To reduce panic among Bitcoin investors, the President of El Salvador has confirmed that his country will continue to buy 1 Bitcoin per day. 🇸🇻🏆
The conclusion ✨
Despite these difficulties, many hope that these agreements will contribute to improving El Salvador's economic situation, which could be a positive sign for the country's economy. 📈💪
$$BTC