The International Monetary Fund (IMF) confirmed that El Salvador has adhered to its commitment to halt Bitcoin accumulation and has stopped Bitcoin purchases in the public sector.
The IMF has added a new dimension to the long-standing debates about El Salvador's Bitcoin policies. In the latest report published by the IMF, it was stated that the El Salvador government has fulfilled its previous promise to 'halt Bitcoin accumulation' and that the country is no longer purchasing Bitcoin in the public sector. This indicates that the country has successfully met an important performance criterion established under its agreement with the IMF.
The IMF also noted that El Salvador has made significant progress in economic reforms. According to the fund's report, reform efforts in governance, fiscal transparency, and structural changes in the country are progressing positively. These developments are critical for enhancing El Salvador's economic stability.
The IMF's statement has brought discussions about El Salvador's cryptocurrency policies back to the forefront, as El Salvador was the first country to recognize Bitcoin as legal tender. President Nayib Bukele's declaration of Bitcoin as official currency in 2021 reverberated worldwide and drew reactions from many international institutions, including the IMF. However, the latest report is seen as evidence that the country is moderating its relationship with Bitcoin. It remains uncertain whether El Salvador will completely abandon its Bitcoin strategy in the future.
