El Salvador says it will keep buying bitcoin despite IMF warning
Stacy Herbert, El Salvador's national bitcoin office director, wrote on X that bitcoin would remain legal tender in the Central American country, and that the government would keep adding to its strategic reserves.
On Wednesday, El Salvador struck a $1.4 billion loan deal with the IMF, as part of which the government of President Nayib Bukele agreed that it would scale back its bitcoin policies. The deal specified that tax payments will only be made in the other official tender, the U.S. dollar.
IMF spokesperson Julie Kozack said on Thursday that planned legal reforms in El Salvador would make acceptance of bitcoin by the private sector voluntary.
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View Details» The government's announcement that it would make more bitcoin purchases «might be just a way to counter any negative blowback» from a perceived diminished status of the cryptocurrency in El Salvador, said Eugene Epstein, head of trading and structured products for North America at Moneycorp in New Jersey.
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