The International Monetary Fund (IMF) is requesting an end to the Salvadoran public sector’s Bitcoin purchases under the $1.4 billion loan agreement.
On March 3, the IMF introduced new restrictive conditions for El Salvador as part of the $1.4 billion funding agreement.
The IMF’s main demands include:
- A ban on the voluntary accumulation of bitcoins by the public sector (not allowed to mine either);
- Restrictions on the issuance of tokenized debt instruments linked to Bitcoin;
- Changes to the Bitcoin Law to eliminate its legal tender status.
In an accompanying statement from February 26, Méndez Bertolo, the IMF’s executive director for El Salvador, emphasized that the program aims to “improve governance, transparency, and the resilience” of the Salvadoran economy. “The risks associated with Bitcoin are being mitigated,” Bertolo stated, noting that the acceptance of the cryptocurrency will become voluntary and tax payments will remain in U.S. dollars.
Bertolo also highlighted that the plan includes additional financial support from the World Bank, the Inter-American Development Bank, and other regional development institutions.
