El Salvador, according to the International Monetary Fund (IMF), hasn’t used its public funds for bitcoin accumulation since last year when the IMF reviewed the loan program.
In an official report released on Thursday, the body said Documentation from the Central American government showed that bitcoins were instead donated by private individuals. It also said that “no further Bitcoin accumulation beyond the documented donations is expected.”
El Salvador became the first in the entire world in 2021, to have bitcoins as legal tender. Salvadoran president Nayib Bukele in 2022 said the country would buy one bitcoin per day but it was never clear where the money was coming from — or if he was actually buying at all.
“Documentation has been provided verifying that Bitcoin accumulation since the first review reflects private donations and that no public resources were used,” According to the IMF press release,
“Understandings were also reached on steps to modernize the legal, regulatory, and supervisory framework for digital assets and to further strengthen the governance and risk-management arrangements for public-sector crypto-asset holdings. Going forward, no further bitcoin accumulation beyond the documented donations is expected.”
Reports indicate that the public’s participation in the bitcoin wallet sponsored by government has been reduced to a minimum, and majority ownership as well as operational control have now passed over to a private company.
El Salvador debuted in 2021 a government-sponsored wallet named Chivo as part its plan to boost bitcoin adoption.
“IMF staff thank the Salvadoran authorities for the constructive discussions and excellent collaboration,” The report was added.
IMF El Salvador has entered into a $1.4billion loan agreement with the Fund at the close of December. However, the fund requested that the country scale back some aspects of its Bitcoin strategy.
World Bank and IMF institutions like to criticize President Bukele’s Bitcoin law. It also asks businesses to accept cryptocurrency, if the have the technical means.
Bukele, President of 2024 admitted Salvadorans didn’t use the crypto to purchase things, as was expected. But the government always boasted about the fact that it still stacked sats.
El Salvador has seen a dramatic drop in murders since a criminal crackdown was launched to combat the notorious crime groups. Formerly the most dangerous country in America, President Bukele now wants to transform it into a hub for technology.
San Salvador is now home to crypto-companies like Tether.
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Source: bitcoinmagazine.com
