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Bad News for Bitcoin! El Salvador Decides to Limit the Use of Bitcoin At Government Level
A very shocking news coming for the Bitcoin sector because of a deal between Bitcoin bull country El Salvador & Bitcoin hater IMF.
The International Monetary Fund (IMF) is an international financial institution. This institution provides financial assistance and policy advice to member countries to help them to fight against payment problems, typically due to economic instability, high inflation, or unsustainable debt levels. Also, the IMF provides loans to countries in need of financial support to stabilize their economies but with certain conditions, for example, restructuring the country’s economy.
On 18 Dec 2024, The IMF body published the latest details about a loan deal with Central American country El Salvador.As per the deal conditions, El Salvador limits its involvement in the country’s national digital Bitcoin wallet, “Chivo”, and also leaves the Bitcoin-related development focus on public sector engagement. That means Bitcoin-related economic activity will remain highly confined to crypto-focused businesses instead of the government authorities.By following the deal precisely, El Salvador will get $1.4 billion from the IMF over the next 40 months.
The IMF and the EL Salvador government have reached a staff-level agreement on a 40-month EFF arrangement to support the government's economic reforms. The agreement with 🇸🇻 is subject to approval by the IMF Executive Board. https://t.co/1GLjFsEhVl pic.twitter.com/M1U77Flz4f
— IMF (@IMFNews) December 18, 2024
The IMF body stated that “The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies. Legal reforms will make acceptance of Bitcoin by the private sector voluntary”.
Many economic experts noted that such deals are not going to impact El Salvador’s Bitcoin vision and it is going to give a better boost to the country’s economy. With this deal, El Salvador’s debt-to-GDP ratio will drop significantly, which is a very good sign for the economy of this country.
Bitcoin price action
Following this news, the trade price of Bitcoin crashed 5% within the last couple of hours. The current trade price of Bitcoin is $99,676.
The current trade price of Bitcoin is $99,673 pic.twitter.com/GUmfYKNz3A
— Bitcoinik (@Bitcoinikdotcom) December 19, 2024
To control the panic level among the Bitcoin investors, the El Salvador president confirmed that his country will keep buying 1 BTC every day.
El Salvador keeps stacking 1 BTC per day, every day. 🇸🇻🏆🚀 pic.twitter.com/6gevIr1j4A
— The Bitcoin Office (@bitcoinofficesv) December 18, 2024
Read also: WazirX announces the re-opening of crypto trading services!
The International Monetary Fund (IMF) is an international financial institution. This institution provides financial assistance and policy advice to member countries to help them to fight against payment problems, typically due to economic instability, high inflation, or unsustainable debt levels. Also, the IMF provides loans to countries in need of financial support to stabilize their economies but with certain conditions, for example, restructuring the country’s economy.
On 18 Dec 2024, The IMF body published the latest details about a loan deal with Central American country El Salvador.As per the deal conditions, El Salvador limits its involvement in the country’s national digital Bitcoin wallet, “Chivo”, and also leaves the Bitcoin-related development focus on public sector engagement. That means Bitcoin-related economic activity will remain highly confined to crypto-focused businesses instead of the government authorities.By following the deal precisely, El Salvador will get $1.4 billion from the IMF over the next 40 months.
The IMF and the EL Salvador government have reached a staff-level agreement on a 40-month EFF arrangement to support the government's economic reforms. The agreement with 🇸🇻 is subject to approval by the IMF Executive Board. https://t.co/1GLjFsEhVl pic.twitter.com/M1U77Flz4f
— IMF (@IMFNews) December 18, 2024
The IMF body stated that “The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies. Legal reforms will make acceptance of Bitcoin by the private sector voluntary”.
Many economic experts noted that such deals are not going to impact El Salvador’s Bitcoin vision and it is going to give a better boost to the country’s economy. With this deal, El Salvador’s debt-to-GDP ratio will drop significantly, which is a very good sign for the economy of this country.
Bitcoin price action
Following this news, the trade price of Bitcoin crashed 5% within the last couple of hours. The current trade price of Bitcoin is $99,676.
The current trade price of Bitcoin is $99,673 pic.twitter.com/GUmfYKNz3A
— Bitcoinik (@Bitcoinikdotcom) December 19, 2024
To control the panic level among the Bitcoin investors, the El Salvador president confirmed that his country will keep buying 1 BTC every day.
El Salvador keeps stacking 1 BTC per day, every day. 🇸🇻🏆🚀 pic.twitter.com/6gevIr1j4A
— The Bitcoin Office (@bitcoinofficesv) December 18, 2024
Read also: WazirX announces the re-opening of crypto trading services!
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