El Salvador's President Nayib Bukele announced that the country will continue purchasing Bitcoin, despite commitments made to the International Monetary Fund.
Bukele's Stance and IMF Terms
On March 3, the IMF issued a report prohibiting the public sector in El Salvador from accumulating Bitcoin. Nonetheless, on March 4, Bukele announced that the country has purchased another Bitcoin. Economists and analysts note this contradicts the terms set by the IMF.
Details of the IMF Deal
El Salvador struck a $1.4 billion agreement with the IMF, which requires the retraction of Bitcoin as mandatory legal tender by April 30. However, as various experts highlight, the law has not yet taken effect.
Economic Situation in El Salvador
Economists point out that El Salvador's national debt has increased. While the government promotes its debt buy-back initiative, the economic situation remains tense. Analysts indicate that despite recent Bitcoin purchases, the government has not breached the agreement with the IMF.
While El Salvador's independent Bitcoin policy garners attention, the conflict with the IMF may have long-term economic repercussions. Observers are keenly watching for upcoming changes.
