Nayib Bukele kills Salvadoran bitcoin initiatives to appease IMF
The post Nayib Bukele kills Salvadoran bitcoin initiatives to appease IMF appeared on BitcoinEthereumNews.com.
Nayib Bukele’s tune has seemingly changed his stance on the International Monetary Fund (IMF). Bukele once laughed at its bankers causing a dip in bitcoin (BTC) prices, refused to consider repeated requests to revoke the crypto as legal tender, and angered IMF workers with various tweets. He has also censored the IMF’s views within El Salvador and refused to meet its demands for debt refinancing. However, yesterday, the president’s staff kowtowed to IMF demands, agreeing to confine his administration’s BTC-related economic activities and transactions, eliminate the acceptance of BTC tax payments, and unwind the government’s involvement with its once-state-backed BTC wallet and ATM network, Chivo. Bukele made these compromises to get access to a paltry $1.4 billion loan extension to fund his administration’s reform agenda. “IMF staff thank the Salvadorean authorities for the excellent collaboration and candid dialogue,” press officers wrote, juxtaposing Bukele’s defiant statements with his compliant acquiescence. Salvadoran authorities also agreed to formalize a policy of voluntary acceptance of BTC as a method of payment for all Salvadoran business owners. Bitcoin to no longer be accepted as legal tender for tax payments In the end, it all comes down to dollars and cents at the negotiation table. Going forward, according to an agreement by Raphael Espinoza on behalf of Salvadoran authorities, US dollars would be the only acceptable denomination for tax payments in El Salvador. Assuming El Salvador keeps the promises it has made to the IMF and implements these reforms by drastically dialing back BTC use in the country, the IMF Board will approve its $1.4 billion loan extension request in February next year. Read more: Bitcoin makes IMF hesitant to issue new loans to El Salvador The country’s GDP is approximately $34 billion and grows roughly 3% per year. Because the country claims to own 6,192…
