📢To obtain a $1.4 billion IMF loan, El Salvador's Bitcoin policy is hampered. Is this a blessing or a curse?
To secure a $1.4 billion loan from the International Monetary Fund, El Salvador had to make concessions on its Bitcoin policy, agreeing to scale back its strong promotion of Bitcoin and limit its use in the public sector. According to the agreed protocol, the relevant plans are expected to be submitted to the IMF Board for approval in early February.
Specifically, El Salvador will no longer mandate private enterprises to use Bitcoin, and the government will no longer accept Bitcoin as a tax currency. Additionally, the state-owned Chivo wallet, which was established to facilitate Bitcoin transactions for citizens, will also gradually reduce government involvement. The IMF stated that these measures are designed to mitigate the risks associated with Bitcoin price volatility and protect the integrity of the financial system.
This agreement also means that El Salvador will enhance regulation and oversight of digital assets to protect consumers and investors while maintaining financial stability. The El Salvadoran government is also attempting to rebuild international confidence in its fiscal policy and attract more international financial support to stabilize the national economy.
However, this decision has also drawn some criticism. El Salvador's President Nayib Bukele, who was once a staunch supporter of Bitcoin, now has to bow to the IMF's demands. Critics argue that this is not only a betrayal of El Salvador's economic strategy but also a betrayal of Bitcoin.
🗣 Opinion:
Despite recent volatility in the Bitcoin market, El Salvador continues to adhere to its plan of purchasing Bitcoin daily, and just yesterday, amid a market downturn, they even increased their purchases, acquiring 11 Bitcoins in a single day. Media reporting may be trying to influence investor sentiment by emphasizing negative market news.
At the same time, the purchasing behavior of mining companies, institutional funds, and El Salvador indicates that there is still strong confidence in Bitcoin's long-term value. Individual investors should remain vigilant, carefully analyze market reports, and avoid panic selling. In the field of investment, maintaining calm and rationality is crucial.
💬 What do you think about this decision by El Salvador? Does this indicate that the acceptance of cryptocurrencies in the global financial system is declining?
