El Salvador’s official Bitcoin wallet will either be sold or shut down in line with the IMF deal. However, El Salvador says it will continue to hold Bitcoin holdings.$BTC
The Bitcoin price has currently fallen to $100,360. The reason for this decline is that the IMF has partially achieved its goals. The IMF, as an institution that warns against Bitcoin and rejects it, has stated that it will monitor whether these warnings are taken seriously, especially in loan requests. So, as the US begins to show more interest in cryptocurrencies, what steps will they take against the IMF?
The IMF and Bitcoin Relationship
The IMF aimed to discourage El Salvador from using Bitcoin by making harsh statements against it. In a previous article, we stated that El Salvador could make some concessions regarding Bitcoin due to the loan agreement it would make with the IMF. The fact that El Salvador did not have a large BTC reserve made the IMF less effective in this regard; because El Salvador completely abandoning Bitcoin could set a negative example for other countries. However, according to recent statements, the IMF was partially successful. El Salvador’s official Bitcoin wallet Chivo will either be sold or completely closed following the loan agreement with the IMF.
Bitcoin (BTC) will still remain legal tender in El Salvador, but this status will not be mandatory. This means that there will be no requirement for widespread use of Bitcoin, which will discourage El Salvador from taking any further steps towards Bitcoin adoption.
So, will El Salvador sell its BTC reserves? No, authorities have announced that they have no plans to sell BTC and that new BTC purchases will continue. Although the BTC price fell to $ 100,360 after the news, the US continues to be determined in its cryptocurrency policies. Statements from the US in the coming weeks may play a supportive role for cryptocurrencies.
