End of Bitcoin in El Salvador? IMF demands end to BTC strategy

The International Monetary Fund (IMF) has added additional conditions to the $1.4 billion loan for El Salvador. The government of President Nayib Bukele had previously confirmed that Bitcoin will no longer be legal tender.

Now, in a new country report further demands regarding Bitcoin. The most far-reaching of these could mean the definitive end of the country's BTC strategy.

The report states, among other things: "Legislative changes will make Bitcoin acceptance by the private sector voluntary. Taxes will be paid only in U.S. dollars and the government will not be allowed to buy Bitcoin during the life of the program." This means that the state's active role in Bitcoin adoption will be drastically curtailed.

El Salvador is seen worldwide as a pioneer in Bitcoin adoption. On Sept. 6, 2021, the country bought its first 200 BTC. Since November 2022, Bukele added one Bitcoin daily to the state wallet. According to data from the Salvadorian Bitcoin Office, the country currently owns 6,101 BTC, with an estimated value of $550 million. Another 5 BTC were purchased yesterday alone, and a total of 45 BTC in the past 30 days.

Two weeks ago, Bukele welcomed MicroStrategy founder and well-known Bitcoin supporter Michael Saylor. During their meeting, they discussed the global adoption of Bitcoin and the opportunities it presents.

While many Bitcoin supporters fear that the IMF is killing El Salvador's Bitcoin strategy, Bukele reassures them. In a post on X, he writes:

According to him, many Bitcoiner investors have turned their backs on El Salvador, but the country continues to make BTC purchases.

However, the big question remains: is Bukele's tenacity putting the IMF loan at risk?