John Dennehy on Nostr: Good morning from El Salvador We are now in DAY TWENTY FIVE since the government ...
Good morning from El Salvador
We are now in DAY TWENTY FIVE since the government rescinded Bitcoin as legal tender, at the request of the IMF (effective 30 April)
It's been six days since El Salvador has bought bitcoin
The nation launched a program to purchase one bitcoin per day in 2022 and had not missed a day until last month. Since then, the buying has been sporadic with some days missed--with this current six day streak the longest yet
Is this related to the IMF deal?
Almost definitely
The govt has not commented at all on the IMF deal (in sharp contrast to the media tour President Bukele did in the days after Bitcoin was made legal tender in 2021) and thus we are reliant on best guesses from verifiable information
The draft agreement with the IMF states "For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined."
That combined with the erratic bitcoin purchases since last month make it seem increasingly likely that the IMF deal will affect this program
On a related note regarding the govt accumulating Bitcoin--they had accepted bitcoin as payment for things such as the airport tax or even to purchase a passport. I don't believe the address of where that Bitcoin is stored has ever been made public so it will be more difficult to observe if and when that stops but most or all of that will cease if it hasn't already as that condition is clear in the IMF draft agreement: "Taxes will only be paid in U.S. dollars..."
The IMF deal is not yet official, El Salvador is currently in the process of conforming to the pre-conditions set out in the draft agreement. Unless the govt finds it's voice on this matter, we will only be able to determine the consequences of it with time and careful observation
We are now in DAY TWENTY FIVE since the government rescinded Bitcoin as legal tender, at the request of the IMF (effective 30 April)
It's been six days since El Salvador has bought bitcoin
The nation launched a program to purchase one bitcoin per day in 2022 and had not missed a day until last month. Since then, the buying has been sporadic with some days missed--with this current six day streak the longest yet
Is this related to the IMF deal?
Almost definitely
The govt has not commented at all on the IMF deal (in sharp contrast to the media tour President Bukele did in the days after Bitcoin was made legal tender in 2021) and thus we are reliant on best guesses from verifiable information
The draft agreement with the IMF states "For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined."
That combined with the erratic bitcoin purchases since last month make it seem increasingly likely that the IMF deal will affect this program
On a related note regarding the govt accumulating Bitcoin--they had accepted bitcoin as payment for things such as the airport tax or even to purchase a passport. I don't believe the address of where that Bitcoin is stored has ever been made public so it will be more difficult to observe if and when that stops but most or all of that will cease if it hasn't already as that condition is clear in the IMF draft agreement: "Taxes will only be paid in U.S. dollars..."
The IMF deal is not yet official, El Salvador is currently in the process of conforming to the pre-conditions set out in the draft agreement. Unless the govt finds it's voice on this matter, we will only be able to determine the consequences of it with time and careful observation