El Salvador’s President Nayib Bukele asserts that the country will maintain its Bitcoin purchases despite an IMF deal that forbids new acquisitions. The recent agreement includes restrictive measures on Bitcoin mining and purchases by public sector entities. Bukele has publicly declared his defiance against these terms, emphasizing the nation’s ongoing commitment to crypto investment.
El Salvador’s President Nayib Bukele announced that the nation will continue purchasing Bitcoin despite a recent deal with the International Monetary Fund (IMF). The IMF agreement includes a clause prohibiting new Bitcoin acquisitions, yet Bukele has expressed a firm commitment to his country’s Bitcoin investments, dismissing the IMF’s conditions.
The IMF’s stipulations are part of a 40-month, $1.4 billion Extended Fund Facility (EFF) which restricts government activities related to Bitcoin. Originally established in December, these terms require El Salvador to cease Bitcoin mining and prevent public sector entities from acquiring new BTC. However, Bukele publicly rejected these conditions, affirming that Bitcoin purchases will not cease.
On March 4, El Salvador added 5 BTC to its treasury, increasing its overall holdings to 6,101 BTC, currently valued at approximately $530 million. This positions El Salvador with the sixth-largest Bitcoin reserve globally, following the United States, China, the United Kingdom, Ukraine, and Bhutan, having begun its BTC acquisition journey in September 2021 as the first country to adopt Bitcoin as legal tender.
Although the legal tender status was modified in January to make Bitcoin acceptance voluntary for private merchants, Bukele continues to advocate for Bitcoin. He has garnered support from significant Bitcoin figures, including Strategy co-founder Michael Saylor, who spoke to the resilience of Bitcoin adoption in relation to Bukele’s steadfast strategy.
In conclusion, despite restrictions imposed by the IMF, El Salvador’s commitment to Bitcoin remains unwavering under President Bukele’s leadership. The nation continues to grow its Bitcoin reserves and assert its right to pursue its crypto strategy, revealing both challenges and support from within the cryptocurrency community. This ongoing narrative highlights the evolving relationship between national economic strategies and global financial institutions.
Original Source: zycrypto.com
