El Salvador has kept its Bitcoin purchase up despite the recent IMF loan. According to on-chain data, over the previous week, El Salvador purchased 29 Bitcoin worth $2.84 million.
This recent purchase has raised the nation’s total holdings to 5,995 Bitcoins worth $562 million. Interestingly, this purchase comes after the nation had decided to take a step back with its Bitcoin policies after receiving an IMF loan of $1.4 billion.
El Salvador To Continue Purchasing Bitcoin
El Salvador has also declared its intention to buy an extra 20,000 Bitcoin. President Nayib Bukele’s chief Bitcoin advisor, Max Keiser, revealed that the nation has increased its daily Bitcoin purchases and will keep on buying more till it reaches its goal of 20K Bitcoins.
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El Salvador Bitcoin Buy Comes Despite IMF Loan
The decision to keep on buying Bitcoin comes after just previously, El Salvador had made the decision to back off on its Bitcoin policy in order to win over the IMF.
As UnoCrypto reported earlier, El Salvador had consented to lower its controversial Bitcoin regulations in return for an International Monetary Fund (IMF) loan of $1.4 billion (£1.1 billion).
El Salvador has often received warnings from the IMF about its Bitcoin policy. Due to this decision of pushing back on policy, the private sector will now have the freedom to decide whether or not to adopt cryptocurrencies under the country’s new regulations.
Consequently, the risks related to El Salvador’s Bitcoin project have “diminished significantly,” according to the IMF.
Therefore the decision to keep on buying Bitcoin might gain another warning from IMF.
IMF’s Previous Suggestions to El Salvador
The IMF has already asked the nation to restrict the exposure of the public sector to Bitcoin, strengthen the regulatory framework and control of the Bitcoin ecosystem, and restrict the reach of the Bitcoin law.
The recommendations were made while IMF was negotiating with El Salvador to promote economic stability. However, despite all the warnings, El Salvador kept buying Bitcoin as more pro-crypto laws were put into place.
El Salvador and the International Monetary Fund have made improving reforms a top priority in their program discussions, but tackling the risks associated with Bitcoin use is still a major topic of discussion.
The two main issues that cause friction between the digital asset business and international regulatory bodies are the idea of controlled markets and the elimination of governmental power.
However, now the market will keep a keen eye on the developments between the relationship and negotiations that happen between El Salvador and IMF.