The International Monetary Fund (IMF) announced that it has reached an agreement with El Salvador to pay $120 million as part of a previously signed loan agreement of $1.4 billion.
Agreement on $120 Million Payment
On May 27, the IMF stated that as part of the agreement, El Salvador is required to meet its obligations to limit government involvement in Bitcoin and cease its engagement with the Chivo wallet by the end of July.
El Salvador's Obligations Regarding Bitcoin
As part of the deal, the IMF emphasized that efforts must continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.
Continued Bitcoin Purchases by El Salvador
Despite the IMF's request to cease accumulating Bitcoin, El Salvador's President Nayib Bukele indicated that his government would continue to acquire one BTC per day as part of its Bitcoin treasury strategy. Following the IMF's announcement, the Bitcoin Office in El Salvador reported further purchases of Bitcoin, raising the country's reserves to 6,190.18 BTC.
The situation regarding Bitcoin in El Salvador remains tense, as the government ignores IMF warnings and continues to increase its cryptocurrency reserves.
