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Despite the recent agreement between El Salvador and the International Monetary Fund (IMF), the authorities ratify their commitment to Bitcoin. In that sense, the promotion of Cryptocurrency and the country’s recurring purchases of BTC will continue at a much higher pace. The latter was stated by the director of the Bitcoin Office, Stacey Herbert.
In one publication In her X account, the official highlighted that BTC remains legal tender in the country. Likewise, the government will continue its recurring purchases of the cryptocurrency to add them to its strategic reserves, he emphasized.
On the other hand, he highlighted that important national initiatives such as the issuance of tokenized assets based on the currency will also continue. These energetic clarifications from Herbert contrast with the recent agreement concluded between the authorities of the Central American country and the IMF. This agreement allows El Salvador to access credits for $1.4 billion dollars in exchange for slowing down the pace of the Bitcoin strategy.
As can be seen, the authorities appear to have not submitted to negotiation some fundamental postulates of their relationship with BTC. Thus, the link between El Salvador and Bitcoin will remain strong despite the negative sentiment caused by the agreement with the financial organization.
🇸🇻EL SALVADOR SECURES $3.5 FUNDING DEAL
➡️Bitcoin remains legal tender
➡️El Salvador will continue buying bitcoin (at possibly an accelerated pace) for its Strategic Bitcoin Reserve
➡️Bitcoin capital markets will continue to be built; for example, the recent tokenized issuance…
— Stacy Herbert 🇸🇻🚀 (@stacyherbert) December 19, 2024
El Salvador’s commitment to Bitcoin will remain
Since 2021, the Salvadoran authorities have made great efforts to expand the use of BTC within its borders. Although the results so far are not as expected, those in charge of the project are confident that patience will pay off. Hence, they see it as a necessity to increase the aggressiveness of their mass campaign.
In this sense, some initiatives linked to the school sector, such as the Little HODler courses and the CUBO+ program for developers, remain. There will probably be relaxation regarding the obligation to accept Bitcoin among merchants.
According to the IMF agreement statement, the country will only collect taxes in dollars. Meanwhile, public sector participation in BTC will be restricted and the government’s influence in promoting the cryptocurrency through the Chivo wallet will also be gradually reduced.
Basically, the agreement with the IMF becomes a victory for the Spanish-speaking country. The latter is because you will have access to a huge credit fund, without fundamentally harming your strategy based on the largest of the cryptocurrencies.
Although the agreement with the IMF was not well received by the crypto community, the truth is that the country is in need of external capital. Regarding its Bitcoin purchasing strategy for its reserves, the country currently has almost 5,968 bitcoins, valued at just over $560 million dollars.
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