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El Salvador Agrees to Ease Its Crypto Policy in Exchange for IMF Loan

El Salvador Agrees to Ease Its Crypto Policy in Exchange for IMF Loan

HappyCoinNewsHappyCoinNews2024/12/20 10:34
By:HappyCoinNews

El Salvador has agreed to adjust its Bitcoin policy in exchange for a $1,4 billion loan from the International Monetary Fund (IMF), after nearly four years of negotiations.

Recognizing El Salvador's unresolved macroeconomic and structural challenges, the IMF-supported program aims to strengthen financial and external stability and create conditions for more sustainable and inclusive growth, the IMF said in a statement.

Under the terms of the agreement, the use of Bitcoin by private companies will become voluntary, rather than mandatory as it is now. Public sector involvement in activities related to the leading cryptocurrency will also be reduced. In addition, Salvadoran citizens will be able to pay taxes only in US dollars.

IMF officials expect the country's government to become less involved in the Chivo crypto wallet, which launched in 2021, over time. Despite offering new users $30 in Bitcoin, Chivo's user base and activity have been steadily declining.

The policy change will not stop the Salvadoran government from continuing to buy Bitcoin On December 18, the National Bitcoin Authority confirmed that the country is buying 1 BTC daily, a strategy President Nayib Bukele announced in November 2022.

The approach has paid off handsomely. Bukele recently reported an unrealized profit of $362 million from Bitcoin -El Salvador's assets, which already exceed 6000 BTC.

EN @happycoinnews
EN @happycoinnews_en
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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