El Salvador has changed his Bitcoin instructions as part of a deal with the International Monetary Fund.
According to ReutersEl Salvador Congress has approved the reforms within a few minutes of receiving President Nayib Bukele, so that the Bitcoin policy of the country is tailored to the conditions of the $ 1.4 billion loan agreement with the IMF.
El Salvador, once locked up with the traditional financial markets because of the high debts and unconventional Bitcoin experiment, had little choice than to find a lifeline. With rising bond returns and limited access to fresh capital, the IMF deal became a necessary pivot to support the government’s economic overhaul agenda
The relocation was necessary to ensure the “sustainability of Bitcoin as a legal tender”, while the “practical implementation” facilitated the ruling party legislator Elisa Rosales when the amendment was passed on with 55 votes in front.
According to the amended legislation, companies no longer have the assignment to accept Bitcoin as payment, so that its use is voluntary. It also limits tax payments to US dollars and paves the way for scaling back to the government-guided crypto initiatives, including the State-supported Chivo portion.
Nevertheless, Bitcoin remains a legal means of payment in the nation because the lake of the flagship currency continues to collect. According to data from the National Bitcoin Office, El Salvador currently owns 6,049 BTC, with a value of approximately $ 633 million, with a non -realized profit of 127%.
A day after he concluded a deal with the IMF, El Salvador doubled his Bitcoin accumulation strategy by deviating from his “1 bitcoin per day” program to create 11 BTC with more than $ 1 million at that time.
At the time, the director of the National Bitcoin Office, Stacy Herbert, said that the country plans to collect Bitcoin at an ‘accelerated pace’. As part of the last purchase, the country added 12 BTC on January 21.
El Salvador became the first nation that Bitcoin accepted as a legal tender on 6 September 2021 and has since launched various crypto-oriented initiatives to integrate Bitcoin into his economy. The government has installed more than 200 Bitcoin money machines, making the country one of the most Bitcoin-friendly regions for transactions.
Other initiatives are Volcano Energy, a bitcoin-mining project that uses renewable energy from volcanic sources to Bitcoin and volcano bonds, a Bitcoin-supported bond initiative that is designed to raise money for infrastructure projects and the development of Bitcoin City-a-a-a-a-a-a-a-a-one-a-one Hub driven by geothermal energy.
On January 13, Crypto Industry Giant Tether Group said that it would move his entire activities to El Salvador after it has protected a license for digital asset services in El Salvador via Bitfinex derivatives, are based in Seychelles. The announcement came less than a week after Bitfinex derivatives had secured the aforementioned license.
