According to Cointelegraph, El Salvador's Bitcoin reserves have a limited impact on the general population, and the country's loan agreement with the International Monetary Fund (IMF) may further complicate its Bitcoin strategy. Quentin Ehrenmann, general manager at My First Bitcoin, an NGO focused on Bitcoin adoption, highlighted these concerns. Ehrenmann explained to Reuters that the revocation of Bitcoin's legal tender status under the IMF agreement has left a gap in public education and state-led adoption initiatives. He noted that since the government entered into this contract with the IMF, Bitcoin is no longer legal tender, and there have been no significant efforts to educate the public. While the government continues to accumulate Bitcoin, this strategy seems to benefit the government more than the people directly.
The agreement with the IMF also stipulates that El Salvador will not purchase new Bitcoin, a detail confirmed in the latest IMF report. This contradicts claims from El Salvador's Bitcoin Office that the country accumulates Bitcoin daily. In January, El Salvador's legislature reduced public sector involvement in Bitcoin to comply with the IMF loan agreement, sparking debate about whether the country's Bitcoin experiment has failed. Cointelegraph's visit to El Salvador in 2023 provided insights into how small businesses and everyday people in El Salvador are using Bitcoin. Joe Hall, a visitor, used Bitcoin to pay for his stay at a hostel through IBEX Pay, a company that facilitates Bitcoin payments via the Lightning Network. The Lightning Network enables near-instant Bitcoin transactions, making it suitable for small daily purchases like coffee or food. Despite the convenience, the lack of education remains a barrier to widespread Bitcoin adoption in El Salvador. Journalists noted that they had to assist the hostel staff in receiving payments through the Lightning Network, highlighting the ongoing challenges in education and Bitcoin adoption in the country. #IMF $BTC