El Salvador will sell or stop using its state-owned Bitcoin (BTC) wallet Chivo as part of an agreement with the International Monetary Fund (IMF), according to a report. The move is in line with the company’s plans to restrict Bitcoin-related programs as part of a $1.4 billion funding agreement. Bitcoin is still the legal currency in El Salvador, but the agreement requires significant changes. Companies are now free to use Bitcoin of their own free will, even if taxes in US dollars are still due.
However, Bitcoin prices fell 4.5% to around $100,000 in midday trading on Thursday. Despite these shortages, El Salvador aims to continue adding Bitcoin to its reserves, “perhaps at an accelerated pace,” according to Stacy Herbert, director of the National Bitcoin Office. She emphasized that private Bitcoin wallets across the country will remain functional even if the Chivo wallet is removed. The regulatory changes show El Salvador’s attempt to find a compromise between financial and international responsibility and its innovative approach to Bitcoin.
This article first appeared on GuruFocus.
