El Salvador’s festive holiday celebrations amid IMF restrictions.
As the country builds up its Bitcoin (BTC) reserves, El Salvador is home to a distinctive Bitcoin-themed Christmas tree to mark the 2024 Christmas celebrations, further highlighting the country’s eternal devotion to the original cryptocurrency.
On December 19, 2024, shortly after El Salvador received a $1.4 billion loan from the International Monetary Fund, it made headlines again when it purchased 11 BTC worth over $1 million.
This action shows the country’s bold BTC strategy despite criticism from outside. The criticism comes primarily from traditional financial institutions and economists who have expressed concerns about the risks of BTC’s volatility and its impact on the country’s financial stability.
El Salvador became the first country to accept BTC as legal tender in September 2021, making history. Although controversial, this ruling signaled a change in the country’s attitude towards cryptocurrencies. BTC has been an important part of the country’s financial scene in recent years.
Cryptocurrency has become a part of everyday life, from government-backed BTC ATMs to its increasing use in businesses.
However, this approach was met with skepticism, particularly from global financial institutions such as the IMF, which imposed conditions on the country’s financial strategy.
The terms of the latest $1.4 billion IMF loan, signed on December 18, 2024, impact the country’s cryptocurrency policy, which includes a ban on cryptocurrency transactions.
