IMF Bans El Salvadorian Authorities from Buying Bitcoin

The International Monetary Fund (IMF) has reached an agreement with the Salvadoran authorities on measures that should guarantee the safety of the country's current bitcoin reserves without further expansion.

According to the organization, the agreements reached are aimed at stabilizing the state's economy and are part of a 40-month financing program with a support volume of up to $1.4 billion. If additional funds are attracted from other institutions, such as the World Bank, the total amount of assistance could be about $3.5 billion.

One of the prerequisites for approval was the amendment of legislation in the country: the rules obliging private companies to accept bitcoin for payment were excluded. Now BTC remains in circulation, but is no longer a mandatory means of payment, which eliminated legal contradictions and reduced risks for business.

Prior to this, the Salvadoran parliament approved changes to the Bitcoin law that would remove BTC's status as an official currency.