The El Salvador government reached a 40-month loan agreement with the IMF totaling US$1.4 billion, which includes making it voluntary for businesses to accept Bitcoin payments, limiting government purchases of Bitcoin, phasing out support for Chivo Wallet, and tax Payment must be made in U.S. dollars only. The agreement is subject to approval by the IMF's executive board. (Preliminary summary: The President of El Salvador announced: The BTC return rate exceeded 133%! Have local people made huge profits?) (Background supplement: El Salvador plans to cancel the mandatory payment of BTC by enterprises: in exchange for a US$3.3 billion loan from the IMF and the World Bank) The International Monetary Fund (IMF) has long urged the El Salvadoran government to abandon its Bitcoin plans and said it would receive loan support if the government compromised. On December 10, (Financial Times) quoted people familiar with the matter as saying that El Salvador is negotiating with the IMF and plans to scale down its Bitcoin program, change the obligation of companies to accept Bitcoin payments to voluntary, and at the same time implement measures to reduce the government deficit. in exchange for a loan from the IMF. El Salvador and the IMF reached a preliminary agreement of US$1.4 billion. Just today, the IMF issued a statement confirming that the El Salvador government has reached a preliminary agreement with the IMF, but it still needs to be approved by the IMF Executive Board before it becomes official. Under the 40-month, $1.4 billion loan agreement, the El Salvadoran government committed to promoting a number of economic reforms, including: making merchants’ acceptance of Bitcoin payments voluntary; phasing out government support for the official e-wallet Chivo Wallet ;Tax payments will be limited to US dollars (the country’s official currency); Restrictions on public sector participation in Bitcoin-related economic activities and the trading and purchase of Bitcoin will be restricted. Note: Chivo Wallet is the official Bitcoin and USD e-wallet launched by the Government of El Salvador to promote the use of Bitcoin as legal tender and improve financial inclusion. Regarding the last point, it is unclear whether this means that El Salvador will not be able to continue to implement its Bitcoin fixed investment plan, and further announcements from the government of the country are still needed. Additionally, the agreement unlocks additional loan support for El Salvador from other international financial institutions, including the World Bank, totaling more than $3.5 billion. Extended reading: El Salvador plans to cancel forcing companies to accept BTC payments: In exchange for a US$3.3 billion loan from the IMF and the World Bank, El Salvador’s Bitcoin holdings are nearly US$600 million. Since 2021, El Salvador has continued to purchase one Bitcoin every day, and its current Bitcoin holdings The total number reached 5,969, worth over $590 million. Bukele’s Bitcoin advisor angrily criticized the IMF’s statement. Max Keizer, President Nayib Bukele’s Bitcoin advisor, posted a response on the X platform, bluntly saying “no one cares about these bastards” and criticizing the agreement as “ Bureaucratic, pointless, nonsense". He said angrily: Bitcoin has always been used voluntarily in El Salvador. Its popularity is now unprecedented and it is still growing rapidly. The IMF’s claims are completely untenable. The Chivo wallet is just one of many wallets in El Salvador, and its presence or absence is immaterial. Once again, the IMF’s argument is completely untenable. Pay taxes in US dollars? Whatever, it doesn’t matter. The Bitcoin savings rate in El Salvador is rising rapidly, and more and more people are using Bitcoin as mortgage to buy houses. El Salvador’s success depends on Bitcoin, not the IMF’s failed policies. El Salvadorans will never go back to those bullshit days of IMF-backed MS-13 (gangsters), colonial institutions, United Fruit, assassination of priests, and banana massacres. These things will not happen again under my watch. Come on horseback! Bitcoin use in El Salvador was always voluntary and its usage has never been higher and continues to grow. The IMF's point is DOA. Chivo is one of dozens of wallets used in ES. Its presence or non-presence is meaningless. Again, DOA Pay taxes in USD? Yea, whatever dude.… — Max Keiser (@maxkeiser) December 18, 2024 Related reports Argentina and El Salvador signed a crypto industry cooperation agreement, will it become the next Bitcoin country? pain! The German government made less than $2.2 billion by selling Bitcoin in half a year, and El Salvador’s BTC holdings are approaching 6,000. Decryption of El Salvador’s Bitcoin is an important promoter: Jesse Knutson, Director of Operations of Bitfinex Securities, will attend a lecture in Taiwan. "El Salvador can’t invest in Bitcoin? Reach a $1.4 billion agreement with the IMF." Magnesium Loan Agreement Will Restrict Purchases of BTC." This article was first published on BlockTempo (the most influential blockchain news media).

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