The IMF has set new conditions for El Salvador’s financing agreement, specifically prohibiting the accumulation of Bitcoin by the public sector. This restriction accompanies an extended $1.4 billion agreement, aimed at ensuring financial governance and transparency. The Salvadoran government has adjusted its Bitcoin law to make its acceptance voluntary and requires tax payments in US dollars, reflecting a shift toward economic stability.
The International Monetary Fund (IMF) has imposed new restrictions on El Salvador’s financial agreement, prohibiting the public sector from accumulating Bitcoin. This prohibition is detailed in a memorandum tied to a $1.4 billion agreement, marking a significant shift in the country’s cryptocurrency policy. The restrictions aim to limit Bitcoin purchases and mitigate associated risks in the public sector.
This agreement signifies a pivotal change in El Salvador’s stance on Bitcoin, which was recognized as legal tender in 2021. The IMF’s influence is compelling the nation to reassess its crypto policy in light of economic stability and the necessity for external financial backing. The ultimate impact of these changes on the nation’s economy remains to be seen, as El Salvador seeks to balance innovation with traditional financial requirements.
Original Source: en.cryptonomist.ch
