IMF Can Rage If El Salvador Continues To Make Bitcoin An Official State Exchange Tool

El Salvador was the first country to make Bitcoin the country's official medium of exchange. (Photo; Doc. Mobbeel)

JAKARTA - El Salvador reiterated its position as the first country in the world to adopt Bitcoin as a legal tender. This policy continues even though the country has just signed an agreement with the International Monetary Fund (IMF) worth US$1.4 billion (approximately IDR 22.68 trillion) which includes reducing Bitcoin-related risks as one of its requirements.

El Salvador's Director of the Bitcoin Office, capki Herbert, revealed that the country will continue to buy Bitcoin consistently as part of the national reserve fund. In his upload on social media, he emphasized that Bitcoin will remain a legal tender in the country. The government also continues to support various crypto-based educational initiatives.

In recent weeks, El Salvador has added 30 Bitcoins to its reserves over the past seven days and 53 Bitcoins in the last 30 days through the 1 Bitcoin program per day.

This accumulation confirms President Nayib Bukele's intention to increase state Bitcoin ownership, although the IMF hints that El Salvador is limiting Bitcoin-related activities.

The agreement with the IMF, which aims to gain credit to strengthen El Salvador's economic stability, includes the commitment that Bitcoin acceptance by the private sector is voluntary.

In addition, the participation of the public sector in transactions and purchases of Bitcoin is expected to be limited. However, the government's latest move to continue buying Bitcoin shows a contradiction to the points in the deal.

The IMF also proposes legal reforms that allow the private sector to vote voluntarily in using Bitcoin.

Meanwhile, the government of El Salvador confirmed plans to sell or discontinue the country's official crypto wallet operation, Chivo Wallet, as part of the deal. However, other private-run crypto wallets can still operate in the country.