An official from the International Monetary Fund (IMF) stated that El Salvador is adhering to the agreement to abandon the use of Bitcoin as a reserve asset. This, despite it being clear that El Salvador continues with its plan to accumulate bitcoin, purchasing 1 BTC per day.
IMF and El Salvador: the agreement to distance from Bitcoin and the purchase of 1 BTC per day
According to what reported, it seems that an official from the International Monetary Fund (IMF) has spoken about El Salvador’s agreement on Bitcoin.
In practice, the Central American country with BTC as legal tender should limit the purchases of Bitcoin by the public sector, as part of a financing agreement of 1.4 billion dollars with the IMF.
At the same time, however, El Salvador appears to continue with its strategy of accumulating bitcoin, purchasing 1 BTC per day.
Despite these purchases, however, Rodrigo Valdes, director of the Western Hemisphere Department of the IMF, would have confirmed that El Salvador is in line with the “performance criteria” established by the IMF.
In this regard, Valdes said:
“Regarding El Salvador, I can confirm that the country continues to adhere to the commitment of not accumulating bitcoin by the fiscal sector, which is the performance criterion we have established. But beyond that, I believe this is very important for the discussion in El Salvador. The program of El Salvador is not about bitcoin. It is about much deeper structural reforms, in terms of governance, transparency. There is a lot of progress. And also on the fiscal front. And the authorities have made a lot of progress in implementing the reforms.”
IMF and El Salvador: “the reform program is not about Bitcoin but governance and transparency”
Last March, the IMF had introduced its new conditions for the 1.4 billion dollar financing agreement with El Salvador. In practice, it involves significant restrictions on Bitcoin purchases by the public sector.
Specifically, the technical memorandum of understanding emphasized that there should be no voluntary accumulation of BTC and that any issuance of debt or tokenized instrument indexed in bitcoin should be limited.
At that moment, Méndez Bertolo, executive director for El Salvador, stated that the extended credit line aims to improve the governance, transparency, and resilience of the country.
The President of El Salvador, Nayib Bukele, has publicly opposed stopping his purchases of BTC.
“All this stops in April.” “All this stops in June.” “All this stops in December.” No, it will not stop. If it did not stop when the world ostracized us and most of the “bitcoiners” abandoned us, it will not stop now and it will not stop in the future. Proof of work > proof of whining”
At the time of writing, El Salvador holds in its wallet as much as 6,161.18 BTC, the equivalent of over 582 million dollars. The transaction movements confirm that, in the last month, El Salvador has purchased 1 BTC per day.
“`html BTC Price “`
In the last seven days, the price of BTC seems to have regained ground, making a pump of +7% and positioning itself above $94,000.
At the time of writing, BTC is worth $94,719 and is in a pump of +14% compared to a month ago. It had not seen this price since the beginning of March, continuing to oscillate in a price range of $76,000 and $90,000.
The market sentiment also seems to be improving, with the Bitcoin Fear and Greed Index appears to have returned to the enthusiasm zone, with a score of 60.
