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El Salvador is sticking to its Bitcoin plan, buying another 6 BTC on Sunday, even as the International Monetary Fund (IMF) continues to pressure it to roll back its cryptocurrency investments. The action confirms President Nayib Bukele’s commitment to Bitcoin as a key financial instrument for the economic future of the country.
Going Against IMF Advisories
IMF has always expressed concerns with El Salvador’s Bitcoin adoption, citing risks to financial stability and cautioning the government against its approach. But the Central American country has stood firm in the belief that Bitcoin can promote financial inclusion, bring in investment, and cut back on dependence on the U.S. dollar.
Recently, El Salvador negotiated a $1.4 billion loan with the IMF involving conditions that entailed voluntary acceptance of Bitcoin but not compulsory usage, and censorship of government-organized crypto plans. The pact also demanded tax payments in dollars only and had the government wind down its Chivo digital purse venture.
Constructing a National Bitcoin Reserve
In spite of such conditions, the nation has gradually built up its Bitcoin reserves. As per the National Bitcoin Office, El Salvador’s overall Bitcoin reserve currently stands at over 6,102 BTC. President Bukele continues to be an outspoken supporter, often referencing Bitcoin’s capacity to revolutionize the country’s economy and secure foreign investment.
Future of Bitcoin in El Salvador
As El Salvador continues to adopt Bitcoin into its economy, the world observes with interest. The IMF warnings indicate possible economic danger, but the Salvadorian government remains firm in its belief in its long-term crypto policy. Whether or not this bet will pay off is to be seen, but one thing is for sure—El Salvador is standing firm on its Bitcoin experiment.
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