Hi HODLers, Hiveans and Lions,
IMF might strike a deal with El Salvador for some loans and projects. If you remember, they were pretty upset when Bukele took over and announced his goal to make #Bitcoin one of the national currencies.
To close this deal, IMF wants El Salvador to drop the requirement among Salvadoran merchants to accept $BTC and to make it voluntary.
El Salvador has been surprising on so many levels as its economy was better than expected. Security used to be an issue but has been adressed. Thanks to the President buying $BTC for the country, it seems like they made a nice profit out of it.
Unfortunatel, its drive to make Bitcoin popular and used within the country did not succeed as 88% of Salvadoran did not use Bitcoin in 2023.
This is not the only requirement formulated by the IMF. The government will also need to reduce its deficit by 3.5% over 3 years. They will have to do it via spending cuts and tax increases.
- El Salvador stands to gain access to $3.3 billion in loans from the IMF, World Bank, and Inter-American Development Bank.
It seems like El Salvador is definitely doing better and I am happy for its citizens.
Stay safe out there,