El Salvador adds Bitcoin but complies with the agreement with the IMF

El Salvador continues to integrate Bitcoin into its economy while maintaining its commitment to the agreement established with the International Monetary Fund (IMF), according to recent statements from its director. Although the agreement with the IMF requires the Salvadoran government to limit its exposure to Bitcoin and cease its status as legal tender, the Central American country has found strategies to continue incorporating the cryptocurrency.

The IMF director for the Western Hemisphere has publicly acknowledged that El Salvador is meeting the performance criteria agreed upon within the framework of the 1.4 billion dollar loan. This implies that, while direct public purchases of Bitcoin have been paused, the nation continues to explore other avenues for its adoption, such as encouraging private investment and developing infrastructure related to crypto assets.

The current focus seems to be on allowing the private sector to participate voluntarily in the adoption of Bitcoin, while the government refrains from using public funds for new acquisitions. This strategy seeks to balance President Bukele's vision of turning El Salvador into a center of innovation in cryptocurrencies with the IMF's demands to ensure the country's economic and financial stability. The continuation of this policy will be crucial to observe the evolution of the relationship between El Salvador, Bitcoin, and the multilateral organization.