El Salvador Increases Bitcoin Reserves Despite IMF Loan Terms
El Salvador phases out Chivo wallet, but accelerates #bitcoin purchases
The IMF's $1.4 billion loan agreement requires a reduction in government policy toward bitcoin.
Bitcoin and capital market education projects continue to grow.
El Salvador reaffirms its commitment to bitcoin, despite the fact that its government has reduced some bitcoin-related policies to meet the terms of a $1.4 billion loan agreement with the IMF. Affirmation of commitment. The government, led by President Naive Buceré, intends to acquire more bitcoins as a strategic reserve.
According to data, El Salvador's bitcoin holdings now total $603.34 million, up 117.74% from the beginning of the year.
El Salvador has finalized a $1.4 billion loan agreement with the IMF. The agreement was concluded within the framework of the Extended Funding Program, which provides financing for reform programs. The country must implement a fiscal restructuring program. Public sector involvement in bitcoin-related activities will also be reduced. El Salvador has pledged to sell the government-backed Chivo wallet. The wallet was created primarily to facilitate bitcoin transactions in the country.
However, bitcoin is still legal tender in El Salvador. The use of bitcoin in the private sector will still be voluntary. Officials emphasized that these measures will help improve fiscal sustainability, governance and transparency, as well as reduce the risks associated with the adoption of #cryptocurrencies . The Salvadoran government said it remains committed to bitcoin in its future fiscal strategy.
Although the Chivo wallet will be deactivated, Stacy Hebert, director of the National Bitcoin Office, said the government will continue to purchase bitcoin at a faster pace. She explained. El Salvador intends to build up huge bitcoin reserves as part of its long-term financial plan.
Read us at: Compass Investments