Why did El Salvador reserves become

With the 40-month, $ 1.4 billion in the IMF Extended Fund, IMF limitations on Bitcoin and Bitcoin Politics is now directly related to El Salvador Financial Stability Plan. In this context, the IMF clarified that the recent announcement of the addition is still Bitcoin Reserve El Salvador “in line with the agreed conditional condition.”

The key element in this agreement is that the Government El Salvador is committed to accumulating more Bitcoin. At least that’s most documents on the condition of matter. In his letter of intention of 12. February and included in staff report published 3. Marta, representatives of El Salvador subscribed to this agreement.

“During the program, the authorities do not accumulate Bitcoins,” Memorandum on Economic and Financial Policies, submitted for a letter signed by the President of the Central Bank, Douglas Pablo Rodriguez Fuentes and Minister of Finance, Jerson Rogelio Posada Molin. This is also included in policies according to the extended section of the Fund arrangement.

After President Naiib Bukela obviously In contrast to that Through his X account, he published that the accumulation “does not stop,” many questions were asked, and the comments related to the harmonization of the Fund and El Salvador began to fill the popular social media platform.

I asked about this to the IMF communication department and their answer suggests more flexible interpretation.

The “Government under the Program has undertaken to accumulate further bitcoins at the level of the total public sector. We have convinced us that the recent increase in Bitcoin in the Bitcoin Strategic Reserve Fund in accordance with the agreed conditional condition,” they replied.

So, if Bitcoin reserves increased as Bitcoin office export Through X, how do you match the commitment not to accumulate anymore?

Operations of the IMF limit to Bitcoin purchase

Taking an agreement, this new clarification and Bukele post a room to explain this apparent contradiction.

The Bitcoin strategic reserve can be structured to maintain it outside the official public sector, allowing him to increase his farm without violating the agreement.

Another option is that not all reserves of purchases or mining. If BitCoin reserves grow through other financial operations, instead of direct involvement of the public sector, it is a technical “accumulation” in terms of agreements.

El Salvador could also be reclassing funds. Bitcoin could move between government subjects without being considered a new acquisition. This could be problematic, because the staff report also explicitly states that all banknotes or colds must be identified.

The IMF’s friendly response also proposes good conditions between the El Salvador’s fund. If reserves are increasing under a policy that supposedly prohibits the accumulationThe fact that the fund clarified shows that there is a standard criterion that is more flexible than what documents explain.

IMF limitations on the purchase bitcoin outside titles

On paper, the Government of El Salvador does not violate the agreement. However, recent clarification from the IMF suggests that there is space for interpretation.

As long as Bitcoin Holdings increased in a way that fits in the program framework, there is no violation for now – at least.

Bitcoin Strategy Bitcoin El Salvador continues to challenge the usual financial norms, and its relationship with the IMF and other multilateral organizations remain critical to continue its development. The key issue moving forward is whether these different interpretations of the IMF tablespoons will lead to conflicts or simply to become part of the evolved financial book.