- As per the National Bitcoin Office, the country holds around 5,969 Bitcoins whose worth is estimated to be around $582 million.
- For the public sector, involvement in bitcoin-associated economic activities and transactions in and buying Bitcoin will be restricted.
- On the first day of this month, the director of Bukele’s National Bitcoin Office accepted during a speech that the launch of Bitcoin had been the most disliked act that this government has taken.
On December 19, an official announced that El Salvador plans to either privatize or shut down the “Chivo” crypto wallet, which was introduced by President Nayib Bukele when Bitcoin was made legal tender in 2021. This announcement came after the country secured a $1.4 billion loan agreement with the International Monetary Fund. The deal also addressed the controversial inclusion of Bitcoin.
The director of Bukele’s National Bitcoin Office, Stacy Herbert took to a social media platform, X, and posted that Bitcoin is still legal tender in El Salvador, and Chivo will be either sold or eased off. She did not reveal how many people used the virtual wallet, which was made by the government in September 2021 for the natives of El Salvador to initiate payments in Bitcoin.
What did the IMF say?
The country will not stop purchasing Bitcoin at probably an increased rate for its Strategic Bitcoin Reserve, the director further mentioned. Two days ago, the International Monetary Fund stated that under the loan agreement, acquiring Bitcoin will not be forced on El Salvador’s private sector, noting that steps are being taken to address the risks linked to Bitcoin.
For the public sector, getting involved in Bitcoin-associated economic activities and transactions in and buying Bitcoin will be restricted. In 2021, El Salvador turned out to be the first country in the globe to set up Bitcoin as legal tender in an attempt by the president to give a boost to a dollarized, remittance-reliant economy.
On the first day of this month, the director accepted during a speech that the launch of Bitcoin had been the most disliked act that this government has taken. About 88% of the natives of the country did not utilize Bitcoin in 2023, as per the survey by the Central American University.
The protest in the country against the adoption
The National Bitcoin Office reveals that the country currently holds around 5,969 bitcoins whose worth is estimated to be around $582 million. Two years ago, the natives held more Bitcoin Lightning wallets as compared to bank accounts.
Last year, Bukele said that the change is necessary to increase tourism in the country by 95%. The adoption was not appreciated on an international level and even within the boundaries, because of the volatility of Bitcoin, its environmental impact, and the absence of transparency related to the fiscal policy of the government.
After this move, thousands of people came together in San Salvador to protest the introduction of Chivo and the adoption of the largest cryptocurrency. Along with this, it was a result of an absence of transparency related to the making of Bitcoin Law and Chivo, and the utilization of tax dollars to buy Bitcoin.
