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El Salvador has recently secured a significant $1.4 billion loan agreement with the International Monetary Fund (IMF), while simultaneously affirming its commitment to maintaining and potentially expanding its Bitcoin holdings.
According to reports, the country’s strategic reserve currently holds an impressive 5,968 BTC, valued at approximately $594 million based on current market prices. Notably, these assets will continue to be maintained and potentially increased as part of the government’s long-term strategy.
Under the revised IMF agreement, private businesses in El Salvador will no longer be mandated to accept Bitcoin payments, instead opting for voluntary adoption. The government has also announced plans to phase out its state-sponsored Chivo wallet initiative, which initially provided citizens with $30 worth of Bitcoin in 2021. This move aims to encourage the growth and development of private Bitcoin wallet services.
Despite these adjustments to the original Bitcoin law, it is clear that the core elements of El Salvador’s cryptocurrency adoption strategy remain intact. Notably, Bitcoin will continue as a legal tender alongside the US dollar, with the government maintaining its vision for positioning El Salvador as a hub for cryptocurrency innovation and development.
As the immediate effects of this policy shift become clearer, the private sector has already responded positively to recent developments. The country’s bond market has seen a significant rally following the government’s offer to repurchase notes from nine different transactions.
Source: blockonomi.com
