El Salvador accelerates its Bitcoin strategy, but also scales back on specific policies after an agreement was reached with the International Monetary Fund.
On Dec. 20, the country’s National Bitcoin Office announced the purchase of 11 BTC for about $1 million. The National Bitcoin Office of the country has announced the purchase of 11 BTC for about $1 million.
El Salvador currently holds 5980.77 BTC worth $585.8 Million.
El Salvador, the country that was the first to accept Bitcoin as legal tender (in 2021), has been using the digital currency since then to spur economic innovation and to attract international investment.
Despite initial concerns about financial stability, Canada has become a pioneer in the area of digital assets.
Bitcoins: Doing double duty
Stacy Herbert of the National Bitcoin Office said that the nation plans to purchase more Bitcoins despite the conditions imposed by the IMF for the $1.4billion loan.
According to the IMF Agreement, El Salvador must reduce involvement of public sectors in Bitcoin-related activities and accept Bitcoin by private business as an optional option. Taxes will be paid in US Dollars only.
Herbert has affirmed, however, that Bitcoin will remain legal tender for the United States. She emphasized the government’s commitment to expanding its Strategic Bitcoin Reserve and advancing Bitcoin-related programs.
Included in these initiatives are education programs, including new “Little HODLer”Workbooks are set to debut in 2025. A similar effort would be made to create Bitcoin capital market in an attempt to attract more capital.
Meanwhile, Max Keiser, senior Bitcoin advisor to President Nayib Bukele, dismissed the IMF’s stipulations as largely irrelevant because Bitcoin usage in the country has always been voluntary.
Keiser pointed out Bitcoin’s growing role in savings and real estate transactions and highlighted its importance in El Salvador’s economic transformation. He declared:
“El Salvador’s success is due to Bitcoin, not the failed policies of the IMF. Salvadorans will never go back to IMF.”
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