El Salvador has secured a $3.5 billion funding deal with the International Monetary Fund (IMF), which requires them to scale back their Bitcoin laws. Despite this, the country plans to continue treating Bitcoin as legal tender and may even accelerate their purchases of the cryptocurrency for their strategic reserve.
The deal also mandates that the private sector’s involvement in crypto activities should be voluntary while restricting the public sector’s participation. Stacy Herbert, head of El Salvador’s National Bitcoin Office, confirmed that the government’s plan to buy and hold Bitcoin as a reserve asset will continue, and they might even increase their purchases.
The country’s millennial president, Nayib Bukele, introduced the Bitcoin law and has been actively involved in buying and promoting Bitcoin on social media. SpotOnChain data indicates that El Salvador’s official Bitcoin wallet holds over 5,900 BTC worth approximately $579.4 million. Despite polls showing mixed opinions about the Bitcoin law, President Bukele remains popular among Salvadorans due to his tough stance on crime.
Source
