①Despite the International Monetary Fund (IMF) continuously warning El Salvador to limit its exposure to Bitcoin, El Salvador has stated that it will continue to purchase Bitcoin and may even accelerate the purchasing pace. ②El Salvador currently holds 5,968 coins, worth approximately 0.594 billion USD based on the current Market Cap.
According to a report on December 21 by Cai Lian Company (Editor: Liu Rui), as the first country in the Global to legalize Bitcoin as a currency, El Salvador's exposure to Bitcoin has garnered significant attention.
Despite the International Monetary Fund (IMF) continuously warning El Salvador to limit its exposure to Bitcoin, El Salvador still stated on Thursday, Eastern Time, that it will continue to purchase Bitcoin and may even accelerate the purchasing pace.
Should the acceleration of Shareholding in Bitcoin continue?
On Wednesday, Eastern Time, the El Salvador government just reached a financing agreement with the IMF. The IMF had previously stated multiple times that the country should limit its exposure to Bitcoin.
However, Stacy Herbert, director of the El Salvador National Bitcoin Office, wrote on X on Thursday that Bitcoin will remain legal tender in El Salvador and the government will continue to increase its Global Strategy reserves.
El Salvador reached a loan agreement worth 1.4 billion USD with the International Monetary Fund on Wednesday. As part of the agreement, President Nayib Bukele agreed to reduce the scale of its Bitcoin policy. The agreement specifies that El Salvador will only pay taxes in another official currency - the US dollar.
Eugene Epstein, head of North American trading and structured products at the financial company Moneycorp, stated that the El Salvador government announced it would purchase more Bitcoin, "possibly to hedge against the negative impact of Bitcoin's declining status in El Salvador."
Considering the scale of the IMF agreement and possible terms, (Bukele) might find it worthwhile to do so.
Still enthusiastically embracing Bitcoin.
El Salvador currently holds 5,968 coins, valued at approximately 0.594 billion dollars based on the current Market Cap.
In September 2021, El Salvador became the first country to recognize Cryptos as legal tender. This move has caused friction between the country and the International Monetary Fund, which has warned multiple times that El Salvador's actions could lead to financial and legal risks.
President Bukele has been promoting the country’s status as a hub for Digital Currency Trade. Just last month, he held a conference on 'adopting Bitcoin'.
The country also features 'Bitcoin Beach', a surfing paradise aimed at tourists where businesses have begun to accept Bitcoin as a form of payment.
