El Salvador abandons Bitcoin and returns to an economy based on the US dollar
At the end of December, El Salvador announced an agreement with the International Monetary Fund to receive a loan of $1.4 billion, which establishes as a condition the end of the use of Bitcoin as official currency
The president of El Salvador, Nayib Bukele, announced at the end of last December the end of the use of Bitcoin as official currency. The measure was imposed by the International Monetary Fund after reaching an agreement to grant the Central American country a loan for $1.4 billion.
As is known, approximately four years ago, El Salvador adopted the main cryptocurrency on the market as its official currency. However, with the agreement for the loan that the IMF will grant, the country will resume the use of the US dollar as its official currency.
In this sense, the government will have to relax its policy in favor of BTC, which will not be required as a form of payment to the private sector, for example, and the participation of the private sector in activities related to Bitcoin will be limited.
However, Bukele’s advisors on cryptocurrencies indicate that expansion plans with Bitcoin will be maintained, since it is a key strategy for the development of El Salvador
M.Pino
Source: crypto-insiders
(Reference image: Erling Løken Andersen on Unsplash)
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