The government of El Salvador has reached a tentative agreement with the International Monetary Fund (IMF) that will reduce the government’s involvement in Bitcoin-related initiatives. Under the terms of the agreement, merchants will no longer be mandated to accept Bitcoin, instead allowing for voluntary adoption.
Despite this shift, the government remains committed to its Bitcoin strategy. It recently purchased 11 Bitcoins, adding to its Strategic Bitcoin Reserve, which now holds a total of 6,203 Bitcoins, valued at approximately $554 million. The government has reiterated its policy of not selling any of its Bitcoin holdings.
Reduced Government Involvement in Chivo
As part of the agreement with the IMF, the Salvadoran government will phase out its direct management of Chivo, the state-backed Bitcoin wallet. However, the country has clarified that all taxes will continue to be paid in U.S. dollars, which remains the country’s official currency.
Public Sentiment Remains Mixed
While the government continues to invest in Bitcoin, public sentiment towards its adoption remains mixed. A recent survey revealed that 92% of Salvadorans still do not use Bitcoin for everyday transactions, although this figure represents a slight improvement from the previous year.
Bitcoin Advisor Disagrees with IMF Concerns
Bitcoin advisor to President Nayib Bukele, Max Keiser, dismissed the IMF’s concerns, arguing that Bitcoin use in El Salvador has always been voluntary and is steadily growing in popularity.
December 2024, Cryptoniteuae
