El Salvador agrees with IMF to freeze Bitcoin purchases in exchange for $1.4 billion loan

El Salvador reached an agreement with the International Monetary Fund (IMF) last week to halt its Bitcoin purchases in exchange for a $1.4 billion loan from the organization.

President Nayib Bukele made the decision for the good of the country. He also “has transferred majority ownership and control of the state-owned Chivo Wallet to a private operator,” according to a statement issued by the Fund on Thursday, August 3.

According to this agreement, no further accumulation of this cryptocurrency is planned beyond documented donations.

So far, it is unclear “where the funds come from or who is overseeing them. According to the law, the Central Reserve Bank (BCR) is the entity responsible for managing the country’s international reserves; however, the Bitcoin funds do not appear in its accounts in any fiscal year.”

M.Pino

Source: elpais

(Reference image source: Jievani Weerasinghe on Unsplash)

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