Listen up, the International Monetary Fund is cracking down on El Salvador’s Bitcoin ambitions.
As part of a $1.4 billion deal, they’re slapping restrictions on public sector Bitcoin purchases.
That’s right, the IMF is saying, “No more Bitcoin accumulation for you, El Salvador!”
It’s forbidden for you
Here’s the deal. The IMF issued new conditions for their funding arrangement, including a technical memorandum that explicitly states no voluntary accumulation of Bitcoin by the public sector.
And if that wasn’t enough, they’re also restricting the issuance of any debt or tokenized instruments tied to Bitcoin.
It’s like they’re trying to put the brakes on El Salvador’s crypto dreams. And no one asks „the f*ck you are?”
Safety first. The legacy system’s safety?
Now, you might wonder why the IMF is being so strict. According to Méndez Bertolo, the IMF’s executive director for El Salvador, it’s all about mitigating Bitcoin-related risks.
They’re pushing for better governance, transparency, and resilience to boost confidence and growth. But let’s be real, it feels like they’re trying to clip El Salvador’s wings.
The good news is that El Salvador has already made some changes. They’ve amended the Bitcoin Law to clarify its legal status and remove its legal tender features.
Now, accepting Bitcoin is voluntary, and tax payments are made in good old U.S. dollars. The public sector’s role in Bitcoin projects is also being scaled back.
Money talks
But here’s the thing, many think that this move could attract more financial support from big players like the World Bank and the Inter-American Development Bank.
So, while it might seem like a setback for El Salvador’s crypto ambitions, it could ultimately lead to more stability and growth.
It’s a tough pill to swallow, but sometimes you gotta play by the rules to get ahead.
