{"id":43669,"date":"2024-12-19T09:40:47","date_gmt":"2024-12-19T09:40:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/el-salvador-to-confine-its-bitcoin-activities-in-1-4bn-loan-deal-with-the-imf\/"},"modified":"2024-12-19T09:40:47","modified_gmt":"2024-12-19T09:40:47","slug":"el-salvador-to-confine-its-bitcoin-activities-in-1-4bn-loan-deal-with-the-imf","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/el-salvador-to-confine-its-bitcoin-activities-in-1-4bn-loan-deal-with-the-imf\/","title":{"rendered":"El Salvador to &#8216;confine&#8217; its Bitcoin activities in $1.4bn loan deal with the IMF"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691506944884-fe80e205-0fbd-4657-9d77-e11145a2891a-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691506944884-fe80e205-0fbd-4657-9d77-e11145a2891a-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691506944884-fe80e205-0fbd-4657-9d77-e11145a2891a-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691506944884-fe80e205-0fbd-4657-9d77-e11145a2891a-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li aria-level=\"1\">The IMF said \u201cpotential risks\u201d of El Salvador\u2019s Bitcoin project will be \u201cdiminished significantly\u201d<\/li>\n<li aria-level=\"1\">A Bitcoin podcaster questioned the true cost of the IMF\u2019s monetary assistance to El Salvador<\/li>\n<li aria-level=\"1\">El Salvador will receive additional funding from other major banks in a financial package totaling over $3.5 billion<\/li>\n<\/ul>\n<p>El Salvador will receive a $1.4 billion loan from the International Monetary Fund (IMF) over the next 40 months as it \u201cconfines\u201d its Bitcoin-related activities.<\/p>\n<p>The IMF is to loan the amount to the Central American country under the Extended Fund Facility (EFF) so it can support the government\u2019s economic reforms.<\/p>\n<p>\u201cThe potential risks of the Bitcoin project will be diminished significantly in line with Fund policies,\u201d the IMF said in a <a href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2024\/12\/18\/pr-24485-el-salvador-imf-reaches-staff-level-agreement-on-an-eff-arrangement\" target=\"_blank\" rel=\"noopener\">statement<\/a>.<\/p>\n<p>The IMF said that acceptance of Bitcoin by the private sector will be made voluntary while engagement in \u201cBitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.\u201d<\/p>\n<p>Taxes will only be paid in US dollars, the IMF noted, adding that El Salvador\u2019s government participation in its Chivo crypto wallet \u201cwill be gradually unwound.\u201d<\/p>\n<p>\u201cTransparency, regulation, and supervision of digital assets will be enhanced to safeguard financial stability, consumer and investor protection, and financial integrity,\u201d the IMF said.<\/p>\n<p>Juan, a Bitcoin podcaster, said on <a href=\"https:\/\/x.com\/TheJuanSC\/status\/1869482539607372155\">X<\/a> that it\u2019s like \u201cwatching a chess game where every move is calculated for economic recovery,\u201d adding \u201cyet it also raises questions about the true cost of such \u2018assistance.\u2019\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The IMF&#8217;s agreement with El Salvador is like watching a chess game where every move is calculated for economic recovery. Yet, it also raises questions about the true cost of such &#8216;assistance.&#8217; Is this a partnership for growth, or is it another chapter in the saga of economic\u2026<\/p>\n<p>\u2014 Juan SC \ud83c\uddf8\ud83c\uddfb\ud83c\udf99\ufe0f\u26a1\ufe0f (@TheJuanSC) <a href=\"https:\/\/twitter.com\/TheJuanSC\/status\/1869482539607372155?ref_src=twsrc%5Etfw\">December 18, 2024<\/a><\/p>\n<\/blockquote>\n<h2>Changing plans<\/h2>\n<p>Earlier this month, it was reported that <a href=\"https:\/\/coinjournal.net\/search\/el+salvador\">El Salvador<\/a> was <a href=\"https:\/\/coinjournal.net\/news\/el-salvador-to-change-bitcoin-plans-to-secure-1-3bn-imf-loan\/\">reducing its Bitcoin ambitious to secure the IMF loan<\/a>.<\/p>\n<p>As well as making the acceptance of Bitcoin voluntary, the government would also reduce its budget deficit by 3.5% of GDP over three years through spending cuts and tax rises while boosting reserves from $11 billion to $15 billion.<\/p>\n<p>El Salvador is expected to receive additional funding support from the World Bank, the Inter-American Development Bank, and other regional development banks. In total, the overall financial package will reach over $3.5 billion.<\/p>\n<p>El Salvador <a href=\"https:\/\/coinjournal.net\/news\/el-salvador-buys-200-btc-amid-the-rollout-of-its-new-bitcoin-law\/\">began accepting Bitcoin as legal tender in 2021<\/a>, making it the first to do so.<\/p>\n<p>Following El Salvador\u2019s adoption, the IMF sent a <a href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2021\/11\/22\/mcs-el-salvador-staff-concluding-statement-of-the-2021-article-iv-mission\">statement<\/a> in November 2021 \u201crecommend[ing] narrowing the scope of the Bitcoin law\u201d while \u201cstrengthening the regulation and supervision of the new payment system.\u201d<\/p>\n<p>This was again called for in January 2022 when the IMF advised El Salvador to <a href=\"https:\/\/coinjournal.net\/news\/imf-wants-el-salvador-to-drop-bitcoin-as-legal-tender\/\">reconsider its decision on Bitcoin as the country\u2019s legal tender<\/a>. More recently, the IMF recommended El Salvador <a href=\"https:\/\/coinjournal.net\/news\/imf-recommends-el-salvador-to-limit-the-publics-exposure-to-bitcoin\/\">limit the public\u2019s exposure to Bitcoin<\/a>.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/el-salvador-to-confine-its-bitcoin-activities-in-1-4bn-loan-deal-with-the-imf\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) The IMF said \u201cpotential risks\u201d of El Salvador\u2019s Bitcoin project will be \u201cdiminished significantly\u201d A Bitcoin podcaster questioned the true cost of the IMF\u2019s monetary assistance to El Salvador El Salvador will receive additional funding from other major banks in a [&hellip;]<\/p>\n","protected":false},"author":3947362367,"featured_media":43670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43669"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362367"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=43669"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/43670"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=43669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=43669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=43669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}