Key Takeaways
- IMF’s $1.4 billion deal bans El Salvador’s public sector from shopping for Bitcoin.
- The settlement additionally prohibits issuing Bitcoin-backed debt.
- Regardless of restrictions, President Bukele continues to accumulate Bitcoin.
On March 3, the Worldwide Financial Fund (IMF) outlined new circumstances in its $1.4 billion funding cope with El Salvador.
A key requirement is that the general public sector should not voluntarily accumulate Bitcoin.
The settlement additionally prohibits the issuance of Bitcoin-denominated debt or tokenized devices linked to Bitcoin.
Objectives of this system
IMF govt director for El Salvador, Méndez Bertolo, acknowledged that this system goals to enhance governance, transparency, and monetary stability.
He confirmed that current amendments to El Salvador’s Bitcoin Regulation eliminated its designation as necessary authorized tender, making Bitcoin acceptance voluntary.
Tax funds will stay in U.S. {dollars}, and public sector involvement in Bitcoin-related actions will likely be restricted.
President Bukele’s dedication
Regardless of these restrictions, Salvadoran President Nayib Bukele stays dedicated to Bitcoin accumulation.
On March 3, he introduced a brand new buy, bringing El Salvador’s whole holdings to six,100 BTC.
The IMF’s mortgage settlement, first secured in December 2024, goals to restrict authorities participation in Bitcoin-related financial actions, however El Salvador has continued its pro-Bitcoin insurance policies.