In this news:
BUENOS AIRES, ARGENTINA - SEPTEMBER 30: President of El Salvador Nayib Bukele waves as he takes ... [+] part in a wreath-laying ceremony to pay homage to Argentine national hero General Jose de San Martin as part of a visit to Argentina at San Martin square on September 30, 2024 in Buenos Aires, Argentina. (Photo by Tomas Cuesta/Getty Images)
Getty Images
The International Monetary Fund published a new Staff Country Report related to El Salvador, in which the fund states that El Salvador bitcoin accumulation needs to stop through both purchasing and mining. The country also should liquidate the fund created to buy, among other essential changes beyond the Bitcoin Law changes passed by the national congress at the end of January.
While El Salvador has made significant progress in several areas, it still faces challenges. Despite the improved security, a thriving tourism industry, and other positive developments, the country continues to grapple with macroeconomic imbalances, high fiscal deficits, and substantial debt. The IMFโs agreement provides El Salvador with $1.4 billion, and could unlock up to $3.5 billion from various multilateral organizations, such as the World Bank and the Inter-American Development Bank.
President Nayib Bukele has shifted his stance on the IMF, moving from mocking the fundโs position on the Bitcoin Law to making adjustments to the law and agreeing to cease all public Bitcoin involvement, including El Salvador bitcoin accumulation.
"The Bukele administration is intent on focusing its second mandate on addressing pending macroeconomic and structural challenges and boosting economic growth under an IMF-supported program," the IMF said in the new report.
El Salvador Bitcoin Accumulation Is Over And No Bitcoin Bonds
Although the agreement was announced in 2024, doubts lingered about the implementation of the changes. The updated report now specifies that El Salvador must fully comply by December 2025 and detail what the changes will look. The changes to the Bitcoin Law primarily concerned its legal tender status, but the IMF emphasized that the public sector must cease its "voluntary accumulation of BTC."