😱😱😱Will El Salvador Change Bitcoin Laws for IMF's $1.4 Billion Loan?
#ElSalvador is seeking a $1.4 billion loan from the International Monetary Fund (IMF), and in return, the body wants the Central American country to revise its Bitcoin (#BTC ) law.
El Salvador Loan Requests and IMF Request
Loan negotiations have been ongoing for some time to help El Salvador urgently pay off its financial commitments and debt payments. In particular, the IMF's demand remained the same during this period: make a reform of the Salvadoran cryptocurrency law. However, El Salvadoran President Nayib Bukele has no plans to heed this request.
The IMF's latest warning came through the Fund's Communications Director Julie Kozack, who spoke about the risks associated with BTC a few days ago. It seems that if El Salvador does not make the desired changes to the Bitcoin law, the Fund will not consider the $ 1.4 billion loan appeal
This request from the IMF is not surprising, as the financial institution is especially against El Salvador regarding the use of BTC as a legal tender. The IMF decided to use the loan negotiation as another way to ask El Salvador to reconsider its Bitcoin stance.
IMF Puts Pressure on El Salvador Over Bitcoin Adoption
Since at least September 2021, the IMF has opposed El Salvador's use of the coin as a legal tender. The financial institution strongly believes that the use of this leading cryptocurrency poses a threat to financial stability and economic health, given its highly volatile nature.
El Salvador's Vice President Felix Ulloa stressed the government's unwavering commitment and went so far as to cite the recent spot Bitcoin ETF approval from the US Securities and Exchange Commission (SEC) as an important factor. Considering how important the $ 1.4 Billion loan is for the Central American country and how important it holds its Bitcoin strategy, it is not yet clear whether El Salvador will bow to the IMF's request.
