The dreams of Bitcoin de El Salvador will now exist “confined” as part of an extended background agreement (EFF), approved on February 26 by the International Monetary Fund (IMF).
The EFF agreement of 40 months and $ 1.4 billion aims to address macroeconomic imbalances and increase growth prospects with an immediate disbursement of US $ 113 million, but seeks to limit Bitcoin’s plans in the country.
El Salvador had more than 6,081 BTC, valued at approximately $ 600 million, as of February 24 in a wallet administered by its Bitcoin management agency. The IMF has banned the voluntary accumulation of Bitcoin by the public sector during the program.
As such, the president of El Salvador, Nayib Bukele, made fun of a purchase of Bitcoin on Monday night, adding 19 BTC to the coffers of the country as the asset fell under $ 90,000.
https://x.com/nayibbukele/status/1896745753521148308
The IMF said that the use of Bitcoin remains marginal in El Salvador, with a minimum circulation as a payment method due to its high price volatility and low public confidence. The financial sector has no exposure to Bitcoin, and Bitcoin tax payments, which will soon be prohibited, have been insignificant.
A previous action for the approval of EFF was the amendment to Bitcoin’s law, making its acceptance voluntary for private entities and eliminating its legal tender status.
The EFF is aimed at improving the primary Balance of GDP of 3.5% for three years, starting with cuts of salary invoices and preserving social spending. Growth is projected by 2.5% to 3% in the medium term, backed by profits and security reforms, while the debt is expected to decrease to 81% of GDP by 2029, with reduced gross financing needs.
Discharge of responsibility: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to guarantee the precision and compliance with our standards. For more information, see Coindesk’s complete policy.
