Is El Salvador Turning Back from the Bitcoin Path? Very Close to an Agreement with the IMF! - Coin Bulletin

robot
Abstract generation in progress

The government of El Salvador is stepping back from using Bitcoin as a legal tender and is approaching an agreement with the International Monetary Fund (IMF) on a $1.3 billion loan deal.

According to sources close to the negotiations, the agreement is expected to be completed within the next two to three weeks.

Bitcoin can eliminate the necessity

Under the agreement, El Salvador committed to removing the obligation for businesses to accept Bitcoin as a means of payment and making it voluntary.

In addition, it is reported that the government has agreed to reduce the budget deficit by up to 3.5% of GDP, enact an anti-corruption law, and increase its reserves from 11 billion dollars to 15 billion dollars.

El Salvador became the first country to adopt Bitcoin as a legal tender in 2021, but the IMF criticized this decision due to financial stability and security risks. The IMF has long been urging the country to abandon this policy.

President Nayib Bukele increased the country's reserves by buying during Bitcoin's downturns and last month stated on social media that the country's Bitcoin reserves were over $600 million. However, the majority of the public still prefers the US dollar for daily transactions.

EL1.18%
BTC1.18%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)