BCGAME - Free 5BTC Daily Bonus!- El Salvador expands Bitcoin reserves at a rapid pace.
- IMF reforms limit public use of cryptocurrencies.
- Bitcoin remains legal tender in El Salvador.
The government of El Salvador has reaffirmed its commitment to Bitcoin, announcing that it plans to accelerate purchases of the cryptocurrency. to strategic reserves, even amid economic reforms imposed by a $1,4 billion deal with the International Monetary Fund (IMF). As part of the terms of the deal, the country decided to discontinue or sell Chivo, its official digital wallet.
At the time of publication, the price of Bitcoin was quoted at US$98.836,39 with a drop of 4.4% in the last 24 hours.
National Bitcoin Office Director Stacy Herbert emphasized that Bitcoin’s legal tender status remains intact in the country despite the changes. “Bitcoin isn’t going anywhere, and neither are we,” Herbert said, reaffirming that the government will continue to utilize the cryptocurrency as part of its long-term economic strategy.
The loan agreement with the IMF requires El Salvador to adopt measures to mitigate the risks associated with cryptocurrencies. Among the changes is the option to make the use of Bitcoin voluntary for private companies. In addition, the involvement of the public sector in activities related to the asset will be significantly reduced, and taxes will be paid exclusively in US dollars, the country's official currency.
These measures reflect the need to balance the country's finances, which adopted Bitcoin as legal tender in 2021. Despite criticism from global financial institutions, El Salvador was a pioneer in granting this status to the cryptocurrency. The IMF had previously warned about the potential risks of using Bitcoin, citing its volatility and possible impacts on the country's financial stability.
Despite the restrictions imposed, the Salvadoran government maintains its position of acquiring Bitcoin as part of its reserve strategy. Currently, El Salvador holds 5.968 Bitcoins, valued at around $632 million, and plans to increase this amount at a faster pace in the coming year.
Bitcoin reserves have been boosted by the recent bull market, which has driven the asset to record highs. Even so, the decision to adopt Bitcoin and use it as a strategic reserve continues to divide opinions among analysts and investors.
The agreement with the IMF, which is still awaiting approval by the executive board, represents a new phase in El Salvador's economic policy. Meanwhile, the country continues to reinforce its commitment to Bitcoin, showing that the reforms do not mean giving up on its bet on cryptocurrencies.
