El Salvador Buys 11 Bitcoin a Day After IMF Loan Deal
The post El Salvador Buys 11 Bitcoin a Day After IMF Loan Deal appeared on BitcoinEthereumNews.com.
El Salvador bought 11 BTC, increasing its reserves to 5,980 BTC, worth around $580 million. The IMF deal requires scaling back government Bitcoin activities, including shutting down the Chivo wallet. Bitcoin remains legal tender, and El Salvador plans to continue buying Bitcoin for its reserves. El Salvador has been purchasing 11 BTC for $1 million, a day after reaching a $1.4 billion loan agreement with the International Monetary Fund (IMF). This purchase adds to the country’s growing Bitcoin reserves, totalling nearly 6,000 BTC, valued at around $580 million. However, this move comes at a critical moment when the country’s controversial Bitcoin policies are under scrutiny due to an agreement with the IMF that requires scaling back government involvement in cryptocurrency. In 2021, El Salvador is the first country to adopt Bitcoin as legal tender. President Nayib Bukele championed this bold move to increase the country’s economy, especially in remittances and financial inclusion. However, the adoption of Bitcoin has not been without challenges. A significant portion of the Salvadoran population has shown ignorance to embrace cryptocurrency. With surveys indicating that nearly 88% of citizens did not use Bitcoin in 2023. Purchase of Bitcoin Despite IMF warning Despite these challenges, El Salvador’s government has continued to invest in Bitcoin and plans to accelerate its purchases. According to Stacy Herbert, Director of the National Bitcoin Office, the government intends to keep buying Bitcoin. For its Strategic Bitcoin Reserve, potentially at a faster pace. This commitment to Bitcoin remains strong, even as the IMF has urged the government to scale back its activities. As part of the loan deal, the IMF has imposed conditions that limit the government’s Bitcoin-related economic activities, including transactions and purchases. The country has agreed to the voluntary use of Bitcoin in the private sector, discontinuing the government-operated Chivo wallet…
