Bitcoin Office’s director, Stacy Herbert, claims that the government buys one Bitcoin. On Thursday, El Salvador announced that it would hold off on buying Bitcoin as quickly as possible but would still do so. It was expected that the government would reduce its exposure to cryptocurrency, as requested by the World Monetary Fund in a funding arrangement that was finalized the day prior.
Buying Bitcoin Despite IMF Deal
The loan agreement includes the government’s pledge to reduce Bitcoin-related risks while preserving the voluntary character of private-sector adoption. The last point it makes is that the government’s Bitcoin risks will be significantly reduced in accordance with IMF policies.
El Salvador’s National Bitcoin Office head, Stacy Herbert, announced Thursday that the country will keep buying Bitcoin for its strategic reserve. In addition, she announced that the office will continue to work on Bitcoin Purchases, create roadmaps, seek out investors, and launch training programs.
In addition, Herbert confirmed that the government’s strategy of buying one Bitcoin daily is still in effect. The president has already said that this regulation will remain in place until Bitcoin “becomes unaffordable with fiat currencies.” The current worth of El Salvador’s 5,969 Bitcoins is $579 million.
Strategy Changes for Bitcoin and Chivo Wallet
On Wednesday, a loan arrangement with the International Monetary Fund for $1.4 billion was finalized. Minimizing Bitcoin rules was a condition of the contract, which President Bukele’s administration was obligated to fulfill. The agreement specifies that the United States dollar, one of the country’s two legal currencies, must be used exclusively to pay taxes.
El Salvador’s ambitious Bitcoin strategy has undergone a significant shift with this arrangement. The International Monetary Fund’s Executive Board has not yet given its approval. On top of that, the government plans to step back from its role in the Chivo wallet, the official Bitcoin digital wallet.
Even though Bitcoin is legal tender in El Salvador, a substantial majority of Salvadorans (92%) have never used it. Consequently, the wallet’s popularity has been somewhat low. Herbert announced the sale or discontinuation of the Chivo wallet. But she did say that El Salvador’s private Bitcoin wallets will be around for a while.
Summary
However, following a $1.4 billion financing agreement, objectives shifted. El Salvador’s International Monetary Fund will continue to buy Bitcoin every day to add to its strategic reserve. The government has pledged to break links with the underused Chivo wallet and reduce Bitcoin-related risks as part of the accord.
The government will cut back on buying Bitcoin Purchases, but using the cryptocurrency is entirely up to the individual. It is mandatory to use US dollars for all tax payments as per the agreement with the IMF. El Salvador now holds 5,969 Bitcoins, valued at $579 million.
