1/ 🌍 El Salvador adjusts its#Bitcoinpolicy to secure an IMF loan

The country is close to an agreement with the IMF for a $1.3B loan, which implies changes to its Bitcoin law and reduction of the fiscal deficit. What does this mean? 🧵👇

2/ Key changes to the Bitcoin law:

Accepting Bitcoin will no longer be mandatory for businesses, but optional. Commitment to reduce the fiscal deficit by 3.5% of GDP in three years through spending cuts and tax increases.

This adjustment seeks greater macroeconomic stability.

3/ Financial impact:

If the agreement is closed, El Salvador could access an additional $2B from the World Bank and the IDB in the coming years. National reserves would increase from $11B to $15B, strengthening the economy.

4/ IMF and its stance on Bitcoin:

The IMF has repeatedly warned about the risks of using Bitcoin as legal tender, citing financial stability and consumer protection concerns.

The adjustment also seeks to reduce the public sector's exposure to crypto.

5/ El Salvador continues to bet on Bitcoin:

With $BTC surpassing $100,000, government reserves are worth more than $600M, an increase of 127%. However, most Salvadorans still prefer to use dollars for their daily transactions.

6/ Conclusion:

Although El Salvador modifies its Bitcoin policy to comply with the IMF, Nayib Bukele's leadership continues to advance its pro-Bitcoin agenda.

💬 Do you think these changes will benefit the Salvadoran economy?

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