The Salvadoran government’s adoption of Bitcoin has had a negative impact on the country’s negotiations with the International Monetary Fund (IMF). According to reports, the IMF has requested changes to El Salvador’s Bitcoin law in order to secure a $1.4 billion loan.
According to the foreign media outlet Infobae, despite the Salvadoran government’s hopes of securing a $1.4 billion loan from the IMF to help accelerate debt payments and other obligations, the IMF has made it clear that Bitcoin is a key factor preventing the country from obtaining the loan and has demanded that El Salvador change its stance on Bitcoin and cryptocurrencies.
However, President Nayib Bukele, who strongly supports Bitcoin, does not appear to be willing to amend the law that made Bitcoin legal tender in the country in 2021, resulting in a two-year deadlock in negotiations between the IMF and El Salvador. Since his re-election in February, Bukele has continued to double down on his cryptocurrency fiscal policy, stating that the government will continue to use the treasury to purchase 1 Bitcoin per day until the legal tender becomes unaffordable.
Negotiations between the Salvadoran authorities and the IMF will resume on April 15, with President Nayib Bukele’s brother, Ibrajim Bukele, serving as the head of El Salvador’s delegation.
