Despite the concessions made as part of the agreement with the IMF, El Salvador is maintaining the course on its Bitcoin strategy. This morning, Nayib Bukele's government has just purchased 11 new BTC for more than a million dollars, thus strengthening its strategic reserves.
El Salvador improves relations with the IMF and continues its Bitcoin strategy
Yesterday, the International Monetary Fund (IMF) announced that it had reached a preliminary agreement with the government of El Salvador under the Extended Fund Facility (EFF). The 40-month program would allow El Salvador to borrow $1.4 billion from the IMF, plus an additional $2.1 billion from the World Bank and other regional institutions.
According to the IMF, this agreement would have been obtained in exchange for a relaxation of certain articles of the “Bitcoin Ley”. This includes ending the requirement for merchants to accept BTC payments, banning the use of Bitcoin to pay taxes, the government's “throttling” of BTC purchases, and its gradual removal from circulation. Chivo portfolio management.
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In reaction to these changes, some Internet users and media have spread misinformation about the law, its adjustments and the adoption of Bitcoin in El Salvador.
Although BTC's official status as legal tender is questioned and may no longer be recognizedBitcoin adoption in El Salvador remains largely intact, as we explained in our article yesterday morning.
Perhaps in response to these criticisms and concerns, the Bitcoin Office announced this morning the addition of 11 Bitcoins, representing more than a million dollars, to the country's strategic reserves. This new deposit adds 10 BTC to the strategy of gradually purchasing one Bitcoin per day, initiated at the end of 2022. Total reserves now reach 5,980 BTC, or almost $600 million.
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Agreement with the IMF or not, El Salvador continues to buy Bitcoin
While some predicted the end of “Bitcoin Nation” and shared rumors about Stacy Herbert and Max Keizer being forced out of government, the Bitcoin Office took everyone by surprise by adding 11 Bitcoins to its reserves.
Evolution of the Salvadoran government’s Bitcoin holdings
However, the opacity surrounding Nayib Bukele and his administration does not make it possible to certify the origin of these funds. It is entirely possible that these 10 Bitcoins were previously acquired and held by a custody service before their transfer to the public address visible on the Bitcoin Office block explorer.
Thus, this transfer could only be a simple communication stunt, aimed at responding to the numerous speculations surrounding the agreement with the IMF.
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In a post on the X network, Stacy Herbert, director of El Salvador's Bitcoin Office, allayed several concerns. She affirmed that BTC retains its status as legal tender, raised the possibility of accelerating the pace of Bitcoin purchases by the government, and assured that educational initiatives such as Cubo+ and Mi Primer Bitcoin would not be impacted.
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Source: Bitcoin Office
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