El Salvador is coming closer to securing a deal with the International Monetary Fund (IMF)—but it has to change some parts of its controversial Bitcoin According to a report in a newspaper, the law will return.
A deal between the IMF and the small Central American country is expected to be signed in the next couple of weeks. The agreement will provide multi-billions dollars as part of the funding. Financial Times reported According to people familiar with the negotiations, Monday’s report was based on information from sources close to them.
According to the newspaper, in exchange, businesses will no longer be forced by the government to accept Bitcoin. They can accept Bitcoin on a voluntary basis.
It would allow the World Bank to unlock up to $2 billion of loan funds from the Inter-American Development Bank. “supporting macroeconomic adjustment and structural reforms.”
Neither IMF or a representative of the Salvadoran government responded immediately to Decrypt‘s questions.
IMF released a statement that said Decrypt It was in El Salvador, working with the government there to come up with a plan for a new program supported by the fund.
El Salvador and the IMF have been talking about an economic growth program for the last few years.
The impoverished—and formerly crime-ridden—country Bitcoin In 2021, the US dollar will be legal tender. Businesses that have the technology to accept cryptocurrency must do so.
At the time the IMF was critical of the action. Citations “a number of macroeconomic, financial, and legal issues.” Since then, Asking for help is a good idea It is time for the nation to abandon the law.
Nayib Bukele, the president of El Salvador was behind this law. The eccentric leader—who has teased the IMF on X (formerly known as Twitter)—has also You can use The country’s funds to purchase Bitcoin
https://t.co/s1F5kwOBEn pic.twitter.com/LD0I2dBHha
— Nayib Bukele (@nayibbukele) January 26, 2022
Salvadorians are Spend $30 The value of cryptocurrency in 2021, via a crypto wallet sponsored by the state.
The President of the Republic, Mr. Bukele has cleaned up the entire country. High murder rates By locking up 2% the population The following are some of the ways to get in touch with each other Interview with August It is not too late to start. Magazine reported that Bitcoin’s experiment has failed due to its lower adoption rate than anticipated.
Polls show that the millennial leader has a high level of popularity at home. Shown Below Citizens are not as enthusiastic about Bitcoin. This is in line with the slow adoption.
Edited By Andrew Hayward