EddieJayonCrypto
5 Mar 25
The International Monetary Fund (IMF) has imposed new conditions on El Salvador's $1.4 billion Extended Fund Facility (EFF) agreement, restricting government engagement in Bitcoin-related activities. The conditions include prohibiting new Bitcoin acquisitions by public sector entities, liquidating t...
The International Monetary Fund (IMF) has imposed new conditions on El Salvador's $1.4 billion Extended Fund Facility (EFF) agreement, restricting government engagement in Bitcoin-related activities. The conditions include prohibiting new Bitcoin acquisitions by public sector entities, liquidating the Fidebitcoin trust fund, terminating government participation in the Chivo wallet system, and disclosing government Bitcoin wallet addresses. Additionally, amendments to El Salvador's Bitcoin Law are being made to clarify the legal nature of Bitcoin and restrict its use by the public sector. The IMF also prohibits the issuance of debt or tokenized instruments indexed to Bitcoin. Despite these restrictions, El Salvador reportedly holds approximately 6,100 BTC, valued at around $510 million. The country has also been engaging with crypto and AI businesses, with President Nayib Bukele meeting with industry leaders to discuss investment opportunities and the establishment of El Salvador as a regional tech hub. The new arrangements also mandate the liquidation of the Fidebitcoin trust fund by July 2025 and termination of government participation in the Chivo wallet system. The IMF document also prohibits the issuance of "any type of debt or tokenized instrument that is indexed to or denominated in Bitcoin." Despite these restrictions, El Salvador's Bitcoin holdings reportedly stand at approximately 6,100 BTC with a current value of roughly $510 million. President Nayib Bukele has been engaging with industry leaders to discuss investment opportunities and the establishment of El Salvador as a regional tech hub.