IMF Puts the Brakes on El Salvador’s Bitcoin Frenzy #CriptoNews

In a controversial move to temper El Salvador’s Bitcoin enthusiasm, the International Monetary Fund (IMF) has rolled out fresh terms under a hefty $1.4 billion deal. According to Cointelegraphthe IMF is tightening the reins on public sector Bitcoin purchases, drawing a hard line: no more stacking Bitcoin. The latest IMF update puts the kibosh on public sector Bitcoin buys or issuing any debt tied to the digital coin. This move is all about shoring up El Salvador’s economic stability by beefing up transparency and governance.

The Bukele Bitcoin Backdrop

President Nayib Bukele, a known crypto advocate, hasn’t let global financial warnings slow him down. Despite the IMF’s stern restrictions, Bukele recently added 19 Bitcoins to the national stash. This boldly defies the cautious stance advised by international financial circles. His latest crypto grab came right as the IMF was pointing out how Bitcoin plays only a minor role in El Salvador’s economy, hammering on its wild price swings and the low trust people have in it.

Economic Reforms and Crypto Constraints

The IMF’s deal with El Salvador aims not only to rein in crypto activities but also to boost the country’s economic health. The deal sets a goal of improving the GDP’s primary balance by 3.5% and expects economic growth to hover between 2.5% to 3% in the coming years. Critically, the agreement puts El Salvador under tight watch regarding its dealings with digital currencies, especially Bitcoin. The IMF has laid down the law: any future government transactions involving Bitcoin will be closely monitored, and stepping out of line could have serious consequences.

At the time of writing, Bitcoin is sitting at $84,470.37.