Bitcoin News: IMF has introduced new conditions in the financing agreement with El Salvador. This initiative relates to the ban on Bitcoin’s “accumulation of bitcoin” by the public sector in the country.
The International Monetary Fund, part of the $ 1.4 billion agreement, includes great restrictions on Bitcoin’s purchases, which represents an important step in relations between the international organization and the Central nation.
El Salvador: Details of the agreement with the International Monetary Fund for “Bitcoin accumulation”
On March 3, International Monetary Fund Make a request To extend the financing agreement with El Salvador, and request to limit bitcoin purchases by the public sector.
This technical memorandum of understanding confirms that there should be no “voluntary accumulation of BTC” and that any debt version or an indexed symbolic tool in Bitcoin will be limited to avoiding responsibility for the public sector.
Executive Director of El Salvador, Méndez bertoloHe mentioned that the extended credit line aims to improve the governance, transparency and flexibility of the country.
These improvements are essential to increase the nation’s confidence and growth capabilities of the nation. Bertollo also confirmed that the risk associated with bitcoin is diluted.
The International Monetary Fund program is designed to attract additional financial support from international organizations such as World Bank and American Development Bank.
These institutions are ready to provide more loans to El Salvador, which total $ 3.3 billion, provided that they are nation The new demands meet from the International Monetary Fund.
In the context of the agreement, Al -Salvadori authorities amended the Bitcoin Law. These amendments show the legal nature of Bitcoin and remove the basic characteristics of legal giving of the law.
Bitcoin accepts voluntarily, and tax payments will be made in US dollars.
Economic stability for El Salvador?
This development represents a major change in Al Salvador policy regarding bitcoin, which was adopted as a legal tendency in 2021. The impact of the International Monetary Fund and the need for external financial support appears to have prompted the country to reconsider its position.
The question now is: Will this change lead to the economic stability that the Salvadian government was contemplating? The answer to the country’s ability to balance the innovative encryption policy may lie with traditional economic needs.
