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    The first country in the world to introduce bitcoin as an official means of payment has failed.

    What needed to happen happened. The first country in the world to introduce bitcoin as official means of payment has failed. We're talking about El Salvador and its promising experiment in bitcoinization of the economy.

    The International Monetary Fund (IMF) has reached an agreement with the government of El Salvador to provide a $1.4 billion loan to finance the country's reform programme. In return, El Salvador agreed to reduce the use of bitcoin in the economy to reduce the risks associated with its implementation.

    President Najib Bouquelle has achieved an important milestone in improving El Salvador's economic situation by signing an agreement with the International Monetary Fund (IMF) that will provide the country with funds to improve its economy.

    El Salvador's authorities received a $1.4 billion loan from the Fund to "cover balance of payments needs and support the government's economic reforms," the IMF said in a press release.

    This facility will also facilitate the country's access to additional support from other institutions, including the World Bank, the Inter-American Development Bank, the Central American Bank for Economic Integration (CABEI) and the Development Bank of Latin America and the Caribbean (CAF) , to receive a combined USD 3.5 billion over 40 months.

    The IMF announced two key changes to El Salvador's bitcoin policy:

    1️⃣ The country will have to change bitcoin's status as legal tender by making its adoption voluntary through legal reforms.

    2️⃣ In addition, the government of El Salvador's participation in bitcoin will be "reduced," including purchasing, paying taxes in cryptocurrency, and the government's participation in the Chivo wallet, El Salvador's official cryptocurrency wallet.

    This latest statement hints at a possible halt to bitcoin purchases in the country, something Bukele has frequently mentioned on social media. "Transparency, regulation, and oversight of digital assets will be strengthened to ensure financial stability, consumer and investor protection, and financial integrity," the IMF announced.

    The additional terms of the agreement in the fine print contradict recent statements from Bukele's crypto advisors, who hinted at the possible use of the country's newfound gold reserves to purchase bitcoins.

    Of course, many are now discussing the issue of the betrayal of the President of El Salvador to his people. After all, El Salvador, thanks to the state's policy of buying one bitcoin every day, has accumulated a total of over 600 million dollars (in bitcoins) in its wallet.

    The government of El Salvador currently holds 5,968 bitcoins, which at current exchange rates are worth approximately $600 million. The average purchase price is $44,835 per bitcoin, while the current value is $97,513.

    Latin America's poorest country was able to pay off its $22.5 billion foreign debt using bitcoin. But now, thanks to IMF blackmail, that opportunity is gone. In addition, El Salvador will increase its debt by another USD 3.5 billion over the next 40 months.

    And of course Naib Bukele is not a traitor to his people. It's just that this small and poor country had its Achilles heel. El Salvador's official currency is the US dollar. The IMF has threatened, in the event of a refusal to sign this agreement, to impose restrictions on El Salvador's correspondent accounts with US banks. In that case, the country would fall into financial collapse. Which, of course, Naib Bouquelle could not do.

    The IMF is frightened by the prospects of El Salvador's experiment to free itself from its debt burden. Because if a country manages to escape the debt trap with the help of bitcoin, it will become an example for other countries, which the owners of the money cannot allow. Nothing personal. Simple neocolonialism.

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