El Salvador Bitcoin dreams will now exist in a “confined” manner within the framework of an arrangement of prolonged funds (EFF), approved on February 26 by the International Monetary Fund (IMF).
The EFF arrangement at 40 months and 1.4 billion dollars aims to approach macroeconomic imbalances and to stimulate growth prospects with an immediate disbursement of American $ 113 million – but seeks to limit the Bitcoin plans of the country.
El Salvador owned more than 6,081 BTC, estimated at around $ 600 million on February 24 in a portfolio managed by its Bitcoin management agency. The IMF has prohibited the voluntary accumulation of Bitcoin by the public sector during the program.
As such, the president of El Salvador, Nayib Bukele, teased a Bitcoin purchase late Monday, adding 19 BTC to the country’s chests while the asset was less than $ 90,000.
https://x.com/nayibbukele/status/1896745753521148308
The IMF said that the use of Bitcoin remains marginal in Salvador, with minimum traffic as a method of payment due to its high price volatility and its low public confidence. The financial sector has no exposure to bitcoin, and Bitcoin tax payments, which will soon be prohibited, have been negligible.
A prior action for the approval of the EFF was the amendment to the Bitcoin law, making its voluntary acceptance for private entities and deleting its status of legal tenders.
The EFC targets an improvement in the primary balance of GDP of 3.5% over three years, starting with the reductions in wage bills and preserving social spending. Growth is expected from 2.5% to 3% in the medium term, supported by safety gains and reforms, while debt should decrease to 81% of GDP by 2029, raw funding needs.
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