El Salvador amends Bitcoin policies to secure $1.4b IMF Deal

El Salvador amends Bitcoin policies to secure $1.4b IMF Deal


El Salvador has changed its Bitcoin regulation as part of an agreement with the International Monetary Fund.

According to ReutersThe Salvador Congress approved the reforms in the minutes following the reception of President Nayib Bukele, aligning the country’s Bitcoin policies with the terms of its $ 1.4 billion loan agreement with the IMF.

El Salvador, formerly locked in the traditional financial markets because of its high debt and its unconventional bitcoin experience, had no choice but to seek a life buoy. With an outbreak of bond returns and limited access To a new capital, the IMF agreement has become a pivot necessary to support the agenda of the government’s economic overhaul

This decision was necessary to ensure the “permanence of bitcoin as a legal offer” while facilitating its “practical implementation”, said the legislative of the Elisa Rosales party, because the amendment was Adopted with 55 votes in favor.

Under the modified legislation, companies are no longer mandated to accept bitcoin as payment, thus making its use voluntary. It also restricts tax payments to US dollars and opens the way to reducing cryptography initiatives led by the government, including the support by the State Wallet goat.

Nevertheless, Bitcoin remains a legal obligation in the country because it continues to accumulate No more flagship currency. According to data from the National Bitcoin Office, El Salvador currently holds 6,049 BTC, worth around $ 633 million, with an unrealized profit of 127%.

One day after concluding an agreement with the IMF, El Salvador double On its Bitcoin accumulation strategy by deviating from its “1 bitcoin per day” program to collect 11 BTC worth more than a million dollars at the time.

At the time, the director of the National Bitcoin office, Stacy Herbert, said that the country planned to accumulate Bitcoin at an “accelerated pace”. As part of its latest purchase, the country added 12 BTC on January 21.

El Salvador has become the first nation to accept bitcoin as a legal tender on September 6, 2021 and has since launched several initiatives focused on crypto to integrate Bitcoin into its economy. The government has installed more than 200 automatic Bitcoin ticket distributors, making the country one of the most friendly regions for transactions.

Other initiatives include Volcano energyA bitcoin extraction project that uses renewable energies from volcanic sources to exploit Bitcoin, and Volcanic bondsAn bond initiative supported by Bitcoin designed to collect funds for infrastructure projects and the development of Bitcoin City – a project of Center de Cryptography in tax franchise powered by geothermal energy.

On January 13, the giant of the crypto-industrial industry Tether Group said that he to relocate Its entire operations to El Salvador after obtaining a license of digital asset service provider in Salvador via Bitfinex derivatives, its affiliate based in Seychelles. The announcement occurred less than a week after Bitfinex derivatives guaranteed Said license.

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