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Salvador Makes Concessions to IMF, But Many Things Remain Unchanged
The International Monetary Fund (IMF) has announced a positive outcome in its negotiations with El Salvador, stating that the country has made concessions regarding its Bitcoin-related projects. However, it appears that little will change in practice.
Herbert, a representative of Salvador’s government, emphasized that they still have many Bitcoin-related projects on the table, including developing bitcoin stock markets and educational programs. The IMF also clarified that it will not affect the legal tender status of Bitcoin in the country.
It is worth noting that the IMF has expressed concerns about El Salvador’s decision to make Bitcoin a legal tender since September 2021. The International Monetary Fund warned in 2022 that Salvador would be taking on significant risks by using Bitcoin as a legal tender, particularly due to its high volatility.
In reality, the Chivo program, which was meant to register citizens for Bitcoin incentives of up to $30 per person, has not gained much traction. A recent study found that over 60% of those eligible had not performed any transactions. Another survey revealed that an astonishing 88% of respondents did not plan on using Bitcoin in 2023.
Despite this lack of enthusiasm, the country will still receive a significant amount from the IMF, totaling $1.4 billion. Additionally, funds from the World Bank, Inter-American Development Bank, and regional development banks are expected to increase the overall total by another $3.5 billion.
It remains to be seen how El Salvador will adjust its plans in light of these concessions, but one thing is clear: little has changed on the surface.
Source: http://www.bitcoinbazis.hu
