2 weeks ago
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El Salvador might implement changes to the law on Bitcoin to secure an agreement with the International Monetary Fund (IMF). The country could gain access to 3.3 billion dollars in loans if it makes the choice to accept BTC by Salvadoran merchants voluntary.
El Salvador and the changes to the Bitcoin law to obtain loans from the IMF
From what has emerged, it seems that El Salvador might implement changes to its Bitcoin law to secure new loans from the International Monetary Fund (IMF).
Specifically, the country with BTC as legal tender since 2021, could make the choice to accept bitcoin as payment voluntary for Salvadoran merchants.
A change of plan since, until now, the law on Bitcoin had forced the category to accept payments in BTC, just like it already does with the other legal fiat currency of the country, the US dollars.
Now, however, things could change. In play, in fact, the IMF has prepared this clause of the new agreement, offering in return to El Salvador its access to a new loan program of 1.3 billion dollars.
Not only that, but also Banca Mondiale e la Banca Interamericana di Sviluppo should lend an additional billion dollars each to the nation, for a total of 3.3 billion dollars.
The decision of El Salvador for the new agreement with the IMF will be revealed in the coming weeks.
El Salvador: the decision to change the law on Bitcoin is worth 3.3 billion dollars
All things considered, therefore, the decision of El Salvador to change its law on Bitcoin as requested by the IMF, is worth exactly 3.3 billion dollars in loan.
Yet, going back to 2021, El Salvador had shaken the entire world when it had granted BTC the same regulatory status as the nation’s official currency.
Not only that, President Nayib Bukele has established a national Bitcoin fund, which, with BTC at almost $100,000, has reached a value of almost 600 million dollars.
In any case, recently, Bukele had stated that he was pleased with what has been achieved from 2021 to today with his strategy on Bitcoin, but that the adoption of BTC in the country is not yet as widespread as hoped.
The recommendations of the IMF on BTC are softer
Last October, the International Monetary Fund (FMI) had already recommended to El Salvador to narrow the scope of the Bitcoin law.
A renewal of something already anticipated in August 2024, even if with a softer approach from the agency.
In fact, the IMF has always been opposed to El Salvador’s decision to legalize Bitcoin. In January 2022, the agency had urged El Salvador to remove the legal tender status for Bitcoin. Over the years, however, the IMF has begun to recognize the crypto asset.
In fact, in recent months, regarding BTC, the IMF had recommended that El Salvador should strive only to improve transparency and mitigate risks to fiscal and financial stability.
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