How can Bukele continue to accumulate Bitcoin after reaching an IMF loan agreement?
El Salvador seems to have contradicted its recent agreement with the IMF to stop public investment in Bitcoin.
El Salvador's President Nayib Bukele surprised industry observers on March 4 when he announced that his government would not stop buying Bitcoin, despite the International Monetary Fund's (IMF) demands.
In January, El Salvador signed a $1.4 billion loan agreement with the IMF on the condition that the country would cancel the adoption of Bitcoin and declassify it as a mandatory legal payment method.
On March 3, the IMF released a report outlining the terms of the agreement, noting that it would prohibit public accumulation of Bitcoin — meaning the government or government-controlled entities could not buy or mine Bitcoin. Bukele, seemingly defiant, stated that his country would continue to accumulate Bitcoin regardless.
The apparent conflict between Bukele's Bitcoin plan and the IMF's terms has raised questions about El Salvador's future Bitcoin accumulation and the potential consequences of the clash with the lending entity.
Bukele's recent Bitcoin purchases do not necessarily "conflict" with the IMF agreement
Among the many details in the documentation released by the IMF on March 3, there is a specific provision that has attracted the attention of Bitcoin supporters, which is "there will be no voluntary accumulation of Bitcoin by the public sector within the framework of the program." #IMF #Bukele