El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻

[As-Soon-As]

El Salvador Rushes to Approve Bitcoin Law Amendment to Comply With IMF Loan Terms
El Salvador agreed to stop accepting tax payments in BTC and to “gradually unwind” the Chivo wallet, a government-issued crypto wallet.

El Salvador has voted to scale back its radically pro-Bitcoin legislation after agreeing to a deal with the International Monetary Fund (IMF) in December 2024, Reuters reports.

The deal involved El Salvador making a basket of financial reforms in exchange for a $1.4 billion loan from the IMF’s Extended Fund Facility (EFF) to fund the government’s reform agenda.

El Salvador also agreed to stop accepting tax payments in the cryptocurrency, and to “gradually unwind” the Chivo wallet, a government-issued crypto wallet. The law was passed with 55 votes in its favor and only two against.

Source link: https://decrypt.co/303626/el-salvador-bitcoin-law-amendment-imf-loan


El Salvador, if any law is to be enacted regarding Bitcoin, it must be supported by everyone, it is truly amazing that 55 people voted for it through voting.
However, most people in El Salvador are Bitcoin supporters, which is why El Salvador is currently at the forefront of Bitcoin development.

[betswift]

El Salvador Rushes to Approve Bitcoin Law Amendment to Comply With IMF Loan Terms
El Salvador agreed to stop accepting tax payments in BTC and to “gradually unwind” the Chivo wallet, a government-issued crypto wallet.

El Salvador has voted to scale back its radically pro-Bitcoin legislation after agreeing to a deal with the International Monetary Fund (IMF) in December 2024, Reuters reports.

The deal involved El Salvador making a basket of financial reforms in exchange for a $1.4 billion loan from the IMF’s Extended Fund Facility (EFF) to fund the government’s reform agenda.

El Salvador also agreed to stop accepting tax payments in the cryptocurrency, and to “gradually unwind” the Chivo wallet, a government-issued crypto wallet. The law was passed with 55 votes in its favor and only two against.

Source link: https://decrypt.co/303626/el-salvador-bitcoin-law-amendment-imf-loan


El Salvador, if any law is to be enacted regarding Bitcoin, it must be supported by everyone, it is truly amazing that 55 people voted for it through voting.
However, most people in El Salvador are Bitcoin supporters, which is why El Salvador is currently at the forefront of Bitcoin development.

We make 2 steps forward and one back.
Otherwise - the IMF would be on their tails all the time they do something out of line in their minds 

[GIF-JOBS]

Giant #Bitcoin drone show in El Salvador 🇸🇻



 https://x.com/BitcoinMagazine/status/1885294369072181519?t=_u4Hc0huLjv7D3MBGQYp0Q&s=19

[Luzin]

The lender will always determine the conditions for loans, hence El Salvador has to concede to these anti+Bitcoin terms. With this move, the IMF has shown its destain for Bitcoin. However, the conditions for the loan don't include the halting of Bitcoin investment.

Why didn't they sell some of their Bitcoin and reject a loan from the IMF? It seems that this decision will be a little favorable. But I think Bukele has thought long and hard about the decision taken. The proof is that they are still accumulating the amount of Bitcoin.

I don't think the legislation made with the IMF will have much of an effect on the development of Crypto. In addition, its tenure is still long enough to continue making decisions about better Bitcoin adoption.

[JayJuanGee]

The lender will always determine the conditions for loans, hence El Salvador has to concede to these anti+Bitcoin terms. With this move, the IMF has shown its destain for Bitcoin. However, the conditions for the loan don't include the halting of Bitcoin investment.

Why didn't they sell some of their Bitcoin and reject a loan from the IMF?

Why are some people so retarded to consider that the most extreme solution of selling some bitcoin would be a feasible remedy, including that if you think about it:

1)  El Salvador's bitcoin stash is likely slightly ONLY over 100% in profits which means that it is barely entering into the bare minimum of compounding.. .. compounding at the first level which is the first doubling

2) El Salvador seems to still be in fairly regular, persistent and consistent accumulation of BTC, so they are not in a position to sell any BTC - including where they are at and how outrageous it would be to go from buying to selling without any pause in between which sounds like a trader rather than investor approach to bitcoin and even similar to how Elon (Tesla) had approached bitcoin in 2021 by selling a good chunk of the BTC that Tesla had bought the same year (like BTC they had bought only a few months earlier).   Surely El Salvador has been buying bitcoin for nearly four years, with a bit of front loading in 2021 and 2022.. but then they went into their 1 BTC per day practice starting in late 2022.. and surely it takes a while to build up a stash, especially using DCA and also including that anyone likely knows that absent some special circumstances, any bitcoin bought should be held for 4 years or longer so they don't have any of their bitcoin that have even a 4 year maturity since they had been bought.  Surely someone could argue that getting a large loan from the IMF could be grounds for special circumstances, yet I don't consider it safe to presume that getting a loan from the IMF would be such special circumstances as to sell any BTC, including that in recent times, we have seen several occasions El Salvador announcing that they were buying larger quantities of BTC that involved at least a few occasions that they bought 11 BTC rather than just 1 daily BTC.  I am not sure if those purchases of 11 BTC were just symbolic or if they might be considering increasing their regular purchase amounts beyond the seemingly ongoing 1 BTC per day purchases.

3) Related to 2), it is likely that El Salvador would have to get to a status of "overaccumulation" before selling some coin would be even feasible.. which I would think that at their fairly whimpy rate of BTC accumulation, might take at least a couple of cycles, and they are barely getting to a timeline of having one full cycle in bitcoin (this year).

I personally don't see any problem with the various chosen compromises that they made, even though maybe they could have had negotiated slightly better compromises.... It is difficult to know if maybe they had considered that was as good of a deal as they were going to be able to get.

It seems that this decision will be a little favorable. But I think Bukele has thought long and hard about the decision taken. The proof is that they are still accumulating the amount of Bitcoin.

I don't think the legislation made with the IMF will have much of an effect on the development of Crypto. In addition, its tenure is still long enough to continue making decisions about better Bitcoin adoption.

There don't seem to be any major hinderances, even though they do seem to be slight symbolic set backs - especially for me the part about tax payments not being able to be accepted in bitcoin.. which that seems problematic and would have had been better to be optional for bitcoin or fiat.

[Popkon6]

We recently had the honor of presenting #btcisla at the first Bitcoin Circular Economies Summit in El Zonte, El Salvador! The place where it all began. A humbling and inspiring experience!



Everyone here has found a place to share their experiences, and they are celebrating Bitcoin in the right place on the right day. However, I think that such a celebration or gathering has included a discussion about Bitcoin for everyone, this event is definitely enjoyable and the right way to express everyone's opinion about Bitcoin. Good luck with their presentation plan.

[Muba20]

Over time, the amount of Bitcoin deposited by El Salvador is increasing. This week, they have continued their regular buying efforts. The DCA strategy is contributing greatly to their Bitcoin reserves. Last week, they collected a total of 6 Bitcoins, of which they were able to add 3 Bitcoins on the third day. Their total collection is 6,052.18 BTC. With the slight decrease in the price of Bitcoin, they are trying to add more Bitcoins. This good plan of theirs will be a milestone for the country's economy in the future.



https://x.com/bitcoinofficesv/status/1885469405343019519?t=rosqzpe-ZpgVnGjtmfaP5A&s=19

[fredericktaylor]

After a brief pause earlier in the week, 🇸🇻 El Salvador snapped back, buying 4 Bitcoin in a single day to keep its streak of acquiring 7 BTC per week alive.

https://x.com/BitcoinNewsCom/status/1885662136287789490?t=VjV0hPVyciiCS9ksytiZjQ&s=19

[Huliya]

🇸🇻 El Salvador buys 5 #Bitcoin in the last 24 hours for its Strategic Reserves.
Bitcoin country is winning 🙌


News ref

[famososMuertos]

We recently had the honor of presenting #btcisla at the first Bitcoin Circular Economies Summit in El Zonte, El Salvador! The place where it all began. A humbling and inspiring experience!

../pic/::

Everyone here has found a place to share their experiences, and they are celebrating Bitcoin in the right place on the right day. However, I think that such a celebration or gathering has included a discussion about Bitcoin for everyone, this event is definitely enjoyable and the right way to express everyone's opinion about Bitcoin. Good luck with their presentation plan.

I don't quite understand your idea (post). Were you present at that event? It seems like you are speaking in the first person in the first paragraph (before the photo).

Then in the next paragraph it is in the third person. However, if your language is Spanish, I invite you to the local section in Spanish, where we have a thread that talks about El Salvador or you can simply have a space with an independent topic, which seems to me to be the best for this interesting news that you bring us and that the Spanish community can glimpse more dialogue initiatives.

Sources:
El bitcoin deja de ser moneda oficial or Txs:2024:El Salvador, primer país en usar bitcoin. Re[2021-22-23]
Link:https://bitcointalk.org/index.php?topic=5343664.0
https://bitcointalk.org/index.php?topic=5343664.msg65012639#msg65012639

[cxtreenal]

🇸🇻 El Salvador buys 5 #Bitcoin in the last 24 hours for its Strategic Reserves.
Bitcoin country is winning 🙌


News ref

They have been strategically accumulating Bitcoin for several years. The unit price of each worth was around $102k.



https://dig.watch/updates/bitcoin-law-amended-in-el-salvador-after-imf-agreement


El Salvador's Bitcoin law was amended as a result of an agreement with the International Monetary Fund (IMF), with a significant clause making the adoption of Bitcoin in the private sector optional. After this reform Nayib Bukele took a more aggressive approach to his country's national reserve.

[Soft Crem]

🇸🇻El Salvador has stacked 5 bitcoin in the past 24 hours into our Strategic Bitcoin Reserve.

    Total SBR Holdings:  6,055.18 BTC    
    Total Added Past 7 Days:  +8.00 BTC
    Total Added Past 30 Days:  +50.42

This is what winning looks like 👇
https://x.com/bitcoinofficesv/status/1885689343714427147?t=7HJ_-LmN0Jz59Xujoy57jA&s=19

El Salvadors are increasing their bitcoins by the day and continue their buying process over time.  This increases their Bitcoin reserves.   They continue the buying process even as the price of Bitcoin falls.  I personally hope so.  That El Salvador's economy will be in good shape.

[Huliya]

BREAKING: A NEW STATUE OF #BITCOIN CREATOR SATOSHI NAKAMOTO HAS BEEN UNVEILED IN EL SALVADOR 🇸🇻



https://x.com/pete_rizzo_/status/1886009199726932193?t=8k3apgtzNnj6pYObVLaL7g&s=19

[cxtreenal]

The next few years are looking even better with Bitcoin for El Salvador with a review of previous years.
You should check out the link below to learn more.


https://x.com/PlanBElsalvador/status/1885500643760091443

[Soft Crem]

For many more years working together 🎆

Let's make El Salvador the best country in the world! 🇸🇻

Thanks for counting on us 🙌

It's been an honour to serve you! 🙏
https://x.com/bitdriver_sv/status/1886038452799508663?t=KeexvQEbP2y298cq5Rm0nQ&s=19

People think that El Salvador is more likely to be the best country in the world because El Salvador is becoming more aware and hardworking than ever before.  Now it remains to be seen if they can sustain this development if they can sustain it.

[nelson4lov]

I'm beginning to have questions about all the investments that el Salvador have made in bitcoin in the past few years now and I see that they're constantly adding to their stash. What happens when they hit a financial crisis and need to cash in on those bitcoin profits to solve their problems?

[JayJuanGee]

I'm beginning to have questions about all the investments that el Salvador have made in bitcoin in the past few years now and I see that they're constantly adding to their stash. What happens when they hit a financial crisis and need to cash in on those bitcoin profits to solve their problems?

You seem to be overly worried and/or not sufficiently outlining the negative scenario that you are envisioning for El Salvador. 

Are you expecting bitcoin prices to crash when El Salvador is put in a position that it needs to cash in?  Are you anticipating that El Salvador won't have other revenue streams that they can use first?  I think that historically a lot of Latin American countries, including El Salvador, have been so burdened and overly burdened by debt that the debt was contributing to the problem.  Bitcoin seems to be serving as an asset rather than a debt. 

Also at this time El Salvador's BTC holdings are are around 100% in profits as compared to their purchasing costs, so I am  having trouble understanding what problem you are contemplating in regards to their holding (and continuing to buy) an asset (namely BTC) that seems to be increasing in value.

[tvbcof]

I'm beginning to have questions about all the investments that el Salvador have made in bitcoin in the past few years now and I see that they're constantly adding to their stash. What happens when they hit a financial crisis and need to cash in on those bitcoin profits to solve their problems?

Since the citizens and the government are multi-sig holders of the much balyhoo'd hodl, and thus need to agree to break into it, the government will auction off selling rights.  Than anyone who wants to take a cash-out will decide whether the offer (say, 50% split) is worth it and can bid.  The citizen's who are participating (by running small mining rigs at their homes) will just have to sign the transaction with the keys they keep under self-custody.

Well...maybe not in this reality.  In a different one, some group runs off with the pile, is captured in Nicaragua, then dies in a crash while being flown back to face the music.

Honestly, I have no idea what sorts of custody framework El Salvador has in place.  It probably is (and probably should be) a state secret.  But if there were shared custody with the citizens, it wouldn't need to be a secret.  No individuals should be under security threat because neither the citizens nor the government have sole custody.

[JayJuanGee]

I'm beginning to have questions about all the investments that el Salvador have made in bitcoin in the past few years now and I see that they're constantly adding to their stash. What happens when they hit a financial crisis and need to cash in on those bitcoin profits to solve their problems?

Since the citizens and the government are multi-sig holders of the much balyhoo'd hodl, and thus need to agree to break into it, the government will auction off selling rights.  Than anyone who wants to take a cash-out will decide whether the offer (say, 50% split) is worth it and can bid.  The citizen's who are participating (by running small mining rigs at their homes) will just have to sign the transaction with the keys they keep under self-custody.

Well...maybe not in this reality.  In a different one, some group runs off with the pile, is captured in Nicaragua, then dies in a crash while being flown back to face the music.

Honestly, I have no idea what sorts of custody framework El Salvador has in place.  It probably is (and probably should be) a state secret.  But if there were shared custody with the citizens, it wouldn't need to be a secret.  No individuals should be under security threat because neither the citizens nor the government have sole custody.

Governments tend to have people who are elected that are in charge of overseeing other people who are supposed to be carrying out their duties on behalf of the public (ie citizens), so they would likely have some kind of multi-sig arrangement... even though your proclamation that you want citizens to share custody seems like out of touch pie in the sky since there is already a presumption that folks working for the government are supposed to be representatives of public interests.

Yes, I understand that you are worried about El Salvadorean custody to be lacking security and/or protection from rug pulls, which is a legitimate concern - especially since sometimes government officials will run away with valuables - including during times of succession of power, too.  There are plenty of examples of government officials getting convicted for fraud, and so surely no one would want government officials (or even hired people concluding in a multi-sig arrangement to be running off with the bitcoin, either.

[tiCeR]

I'm beginning to have questions about all the investments that el Salvador have made in bitcoin in the past few years now and I see that they're constantly adding to their stash. What happens when they hit a financial crisis and need to cash in on those bitcoin profits to solve their problems?

You seem to be overly worried and/or not sufficiently outlining the negative scenario that you are envisioning for El Salvador. 

Are you expecting bitcoin prices to crash when El Salvador is put in a position that it needs to cash in?  Are you anticipating that El Salvador won't have other revenue streams that they can use first?  I think that historically a lot of Latin American countries, including El Salvador, have been so burdened and overly burdened by debt that the debt was contributing to the problem.  Bitcoin seems to be serving as an asset rather than a debt. 

Also at this time El Salvador's BTC holdings are are around 100% in profits as compared to their purchasing costs, so I am  having trouble understanding what problem you are contemplating in regards to their holding (and continuing to buy) an asset (namely BTC) that seems to be increasing in value.

.

As a precise reader that you are, I agree that nelson4lov should outline what concerns he is trying to portray here.

El Salvador, if I recall correctly, began buying bitcoin at around $45k for the first time (officially). One concern you could have brought up is whether the IMF is willing to stick to their funding policies if El Salvador doesn't comply with the terms they have agreed upon for further funding. One of the terms was that El Salvador decelerates bitcoin purchases. Funnily enough, one day after they made a $1.4 billion agreement, they bought 11 BTC and added another 12 BTC on January 19

The national debt quota sind they are buying bitcoin has decreased from 95% to 85% as per statista.com.

But think about it from a different perspective: El Salvador's accumulation strategy was never aiming at flipping their stash for a 100% profit. Neither is it the strategy (or a lack thereof) that they suddenly have to sell in economic turmoil at a loss. They are grinding hard, that is true, but I think their strategy will work in their favor because let's assume that bitcoin drops in price significantly, like 60%, do you think the IMF would force El Salvador to sell at a massive loss or would they rather keep supporting El Salvador because they themselves are positive that there will be an upswing again? Because if El Salvador sells at a loss (which is unlikely because they are very far in the green zone), it would only lead to more needs from the IMF.

I understand that there is still a speculative element involved on behalf of Bukelele, but it is possible that in 10 years from now it's those BTC purchases that turn the tide. El Salvador's GDP has been significantly increasing over the past few years and keep in mind they are a service industry to a large degree. Being progressive about technology and sticking to their word and strategy is a shot they take that can seriously pay off. Their debt is around $30 billion now and their GDP is about to exceed $35 billion. This is all not like armageddon. But in percentage points, their growing BTC holdings could significantly neutralize their debt quota later down the road. Not tomorrow, but as JJG likes to say, rather 4-10 years and when we talk about countries and strategies, 10 years is a good time horizon to consider.