El Salvador’s President Nayib Bukele reaffirms support for Bitcoin, defying the International Monetary Fund's loan conditions.
IMF's Loan Conditions
The International Monetary Fund set conditions for granting a $1.4 billion loan to El Salvador, focusing on strengthening financial buffers and transparent management of Bitcoin activities. The program prohibits voluntary accumulation of Bitcoins by the public sector.
Bitcoin Purchases and Critics' Views
Despite the IMF's conditions, Bukele’s government has confirmed new Bitcoin purchases. Critics argue that this might contradict the loan terms and jeopardize future disbursements. Bitcoin advocate Samson Mow warned that ignoring the IMF's terms could damage the country's credibility.
Defiance or PR Move?
Bukele's actions have raised questions about whether this is defiance or a calculated PR move to maintain support from Bitcoin advocates. John Dennehy, founder of 'My First Bitcoin,' pointed out the 'impossible contradiction' in Bukele's messaging.
Despite potential risks, Bukele remains confident that his Bitcoin policy can succeed without major disruptions.
