Since El Salvador signed an agreement with the International Monetary Fund (IMF) at the end of last year, the country bought 240 Bitcoins. This is remarkable because the agreement prohibits the country to buy more bitcoin. What exactly is it?
El Salvador continues to reconstruct Bitcoins
El Salvador currently has 6,210.18 Bitcoins, just below the five largest holders of sovereign bitcoins. According to Data From the Bitcoin office of the country, 30 Bitcoin were added last month and 8 bitcoin in the last seven days. The latest purchase of 1 bitcoin was made 18 hours ago for 108,313 US dollars.
Bitcoin El Salvador Bag. Source: Bitcoin.Gob.sv.
El Salvador’s strategy is to buy a bitcoin per day, although the country has accelerated This strategy sometimes in the past. Meanwhile, Bitcoin has an exceptional place in El Salvador policies for years and the strategy has also contributed to the economy. President Nayib Bukele launched the strategy in 2022.
Will El Salvador have problems with the IMF?
El Salvador continues to accumulate bitcoin, but not without risk. The country has received multiple warnings from the IMF. In exchange for financial support, El Salvador has agreed not to designate Bitcoin as an official means of payment and not to receive the currency publicly for his treasure.
However, El Salvador does not seem to violate any rule. The director of the western IMF hemisphere department, Rodrigo Valdés, He said in an interview At the end of April, El Salvador does not accumulate bitcoin with taxpayers or other public funds. Purchases are made with Bitcoin Office, an entity outside the formal budgetary sector.
As long as El Salvador does not buy Bitcoin with the government’s budget, the country does not seem to violate its agreement with the IMF. Thus, the country retains both its image of Bitcoin and its agreement with the IMF.
In addition, El Salvador changed things to respect the agreement. Earlier this year, the country has repealed the Bitcoin law, which previously required that companies accept Bitcoin as a means of payment.
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