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El Salvador to accelerate Bitcoin purchases despite IMF deal
Although the Central American nation will wind down some of its Bitcoin efforts, it remains steady in its commitment to become a crypto hub.
2 min read
Updated: Dec. 19, 2024 at 9:51 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
El Salvador plans to continue and potentially accelerate its purchases of Bitcoin (BTC) despite its recent deal with the International Monetary Fund (IMF), according to Stacy Herbert, the director of the country’s Bitcoin Office.
Moreover, Herbert confirmed that Bitcoin would remain legal tender alongside the US dollar and that the government would continue adding to its strategic reserves. The Central American nation currently holds 5,968 BTC, worth approximately $594 million, and is positioning itself as a global hub for crypto innovation.
She also highlighted the government’s continued commitment to integrating Bitcoin into its financial and educational systems, alongside efforts to attract global investment.
Recent financial advancements include the tokenized issuance of US Treasuries on the Liquid Network, developed in collaboration with NexBridge. Herbert teased more announcements regarding capital markets initiatives tied to Bitcoin.
Meanwhile, Bitcoin-related educational programs are also expanding. The government plans to roll out Bitcoin workbooks for grades 2 and 3 students by January 2025, alongside ongoing developer training and high school courses under “Mi Primer Bitcoin” and Node Nation.
Additionally, a certification program aimed at training 80,000 civil servants continues under the ESIAP initiative.
El Salvador is also restructuring its digital wallet ecosystem. It plans to sell or shut down the state-backed Chivo Wallet while allowing private Bitcoin wallet services to flourish.
El Salvador closes financing deal
Notably, these efforts come after El Salvador closed a $1.4 billion financing agreement with the International Monetary Fund (IMF) on Dec. 18, which had previously urged El Salvador to limit its exposure to Bitcoin.
The $1.4 billion loan deal with the IMF represents a critical financial lifeline for El Salvador but comes with stipulations. Among these, the government of President Nayib Bukele agreed to scale back some aspects of its Bitcoin policies.
IMF spokesperson Julie Kozack told Reuters that tax payments in the country would only be accepted in US dollars from now on, and new legal reforms will make the acceptance of Bitcoin by private businesses voluntary.
While the IMF deal introduces new constraints on the use of Bitcoin, Bukele’s administration appears determined to maintain its status as vanguard jurisdiction regarding crypto adoption.
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Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Nayib Armando Bukele Ortez is a Salvadoran politician and businessman who is the 46th and current President of El Salvador.
