IMF puts the squeeze on El Salvador, and says no more Bitcoin for you

-

Listen up, the International Monetary Fund is cracking down on El Salvador’s Bitcoin ambitions.

As part of a $1.4 billion deal, they’re slapping restrictions on public sector Bitcoin purchases.

That’s right, the IMF is saying, “No more Bitcoin accumulation for you, El Salvador!”

It’s forbidden for you

Here’s the deal. The IMF issued new conditions for their funding arrangement, including a technical memorandum that explicitly states no voluntary accumulation of Bitcoin by the public sector.

And if that wasn’t enough, they’re also restricting the issuance of any debt or tokenized instruments tied to Bitcoin.

It’s like they’re trying to put the brakes on El Salvador’s crypto dreams. And no one asks „the f*ck you are?”

Safety first. The legacy system’s safety?

Now, you might wonder why the IMF is being so strict. According to Méndez Bertolo, the IMF’s executive director for El Salvador, it’s all about mitigating Bitcoin-related risks.

They’re pushing for better governance, transparency, and resilience to boost confidence and growth. But let’s be real, it feels like they’re trying to clip El Salvador’s wings.

The good news is that El Salvador has already made some changes. They’ve amended the Bitcoin Law to clarify its legal status and remove its legal tender features.

Now, accepting Bitcoin is voluntary, and tax payments are made in good old U.S. dollars. The public sector’s role in Bitcoin projects is also being scaled back.

Money talks

But here’s the thing, many think that this move could attract more financial support from big players like the World Bank and the Inter-American Development Bank.

So, while it might seem like a setback for El Salvador’s crypto ambitions, it could ultimately lead to more stability and growth.

It’s a tough pill to swallow, but sometimes you gotta play by the rules to get ahead.

LATEST POSTS

ECB wants to use central bank money for crypto transactions

The European Central Bank just dropped a bombshell on the financial world. They announced a plan to use central bank money for distributed ledger technology...

SEC gives green light to Grayscale’s new crypto ETF

Grayscale just scored a major victory. The U.S. Securities and Exchange Commission finally gave the thumbs-up for Grayscale to turn its Digital Large-Cap Fund into...

How to pump your stocks by 957%? Buy Ethereum, says BitMine

BitMine Immersion Technologies raised $250 million to stepping into Ethereum treasury holdings. Not just mining Bitcoin anymore, these guys want to be one of the...

Bybit announces Bybit.eu, Europe’s new full-compliant crypto exchange

Bybit just rolled out a slick new platform, Bybit.eu, tailor-made for Europe’s crypto users. This isn’t some half-baked side project. No, sir. It’s a fully...

Most Popular

Guest posts