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El Salvador May Need to Curtail its Bitcoin Ambitions in Exchange for IMF’s $1.4 Billion Loan
As El Salvador reaches a monumental deal with the International Monetary Fund (IMF) worth $1.4 billion, whispers of potential modifications to their pioneering Bitcoin strategy have started circulating within the crypto community. The agreement comes after years of arduous discussions and is meant to alleviate the country’s financial plight; however, this development has raised concerns regarding El Salvador’s Bitcoin policy.
The IMF explicitly stated that the deal necessitates El Salvador to curtail its Bitcoin-related activities and transactions in exchange for the loan. Furthermore, the organization emphasized that the public sector will only engage in Bitcoin transactions voluntarily, rather than being mandated to do so. In a joint statement by IMF Deputy Director Luis Cubeddu and Mission Chief Raphael Espinoza, they noted that “legal reforms will make acceptance of Bitcoin by the private sector voluntary.”
Moreover, the agreement entails unwinding the government’s participation in the Chivo e-wallet at a slow pace. This development has sent shockwaves through the crypto community, as many had come to expect El Salvador’s commitment to its innovative approach.
In light of this, it is essential to explore whether pro-Bitcoin El Salvador will be willing to scale back its ambitions for these crucial funds that could potentially double their Bitcoin holdings.
Source: www.cryptonewsz.com
