El Salvador has once again defied the IMF deal to buy yet another set of Bitcoin. According to official reports, El Salvador has added another 12 Bitcoins to its Strategic Bitcoin Reserve.
The current buy comes as a second incident after the IMF deal, parallel to the over-optimism and rise in Bitcoin prices.
Donald Trump’s inauguration as the next US president has kept the crypto markets afloat, helping Bitcoin break the $100K barrier that it was stuck in for the past couple of weeks.
El Salvador’s Previous Bitcoin Buy
El Salvador had continued to buy Bitcoin despite the recent IMF loan. On-chain data indicates that El Salvador bought 29 Bitcoins totaling $2.84 million on December 23rd.
Additionally, El Salvador had also announced its plan to purchase an additional 20,000 Bitcoin in the coming year. According to Max Keiser, President Nayib Bukele’s senior Bitcoin advisor, the country has upped its daily Bitcoin purchases and plans to continue doing so until it meets its target of 20,000 Bitcoins.
What Were The IMF Loan Conditions?
As previously reported by UnoCrypto, El Salvador agreed to relax its contentious Bitcoin laws in exchange for a $1.4 billion (£1.1 billion) loan from the International Monetary Fund (IMF).
The IMF has frequently issued warnings to El Salvador on their Bitcoin policy. With the country’s new legislation, the private sector will now have the autonomy to determine whether or not to embrace cryptocurrencies as a result of this governmental move.
As a result, El Salvador’s Bitcoin project’s risks have “diminished significantly,” the IMF said.
In 2021, El Salvador became the first country in the world to legalize Bitcoin. El Salvador has been regularly purchasing Bitcoin as part of its larger plan to employ digital currency to promote financial inclusion and economic prosperity.
IMF’s Previous Warnings For El Salvador
The IMF has previously requested that the country limit the public sector’s exposure to Bitcoin, fortify the regulatory structure and oversight of the Bitcoin ecosystem, and limit the scope of the Bitcoin legislation.
The suggestions were offered to support economic stability during IMF negotiations with El Salvador. Nevertheless, El Salvador continued purchasing Bitcoin in spite of all the cautions.
Addressing the hazards linked with Bitcoin use remains a key topic of discussion, despite El Salvador and the International Monetary Fund prioritizing enhancing reforms in their program negotiations.
The concept of controlled markets and the abolition of governmental power are the two primary points of contention between the digital asset industry and international regulatory organizations.
Also Read: Bitget Secures Bitcoin Service Provider License In El Salvador, Expands Global Presence