El Salvador’s Bitcoin Dreams will now exist in a “limited” way as part of an extended fund facility (EFF) arrangement approved on February 26 by the International Monetary Fund (IMF).
The $ 40-month EFF EFF event of $ 1.4 billion is aimed at tackling macroeconomic imbalances and increasing the growth opportunities with an immediate payment of $ 113 million-dollars seeking to limit the country’s Bitcoin plans.
El Salvador held over 6,081 BTC, valued at approximately $ 600 million, per February 24 in a wallet managed by its Bitcoin Management Agency. The IMF has banned the voluntary accumulation of Bitcoin of the public sector during the program.
As such, El Salvador President Nayib Bukele teased a Bitcoin purchase late on Monday, adding 19 BTC to the country’s boxes as the asset fell below $ 90,000.
https://x.com/nayibbukele/status/1896745753521148308
The IMF said the Bitcoin use remains marginal in El Salvador, with minimal circulation as a payment method due to its high award volatility and low public confidence. The financial sector has no exposure to Bitcoin, and tax payments in Bitcoin, which are soon banned, have been insignificant.
A prior action for the effect of the effect was the amendment to the Bitcoin Act, which made its acceptance volunteer for private units and removed its legal tender status.
EFF is targeted at a primary balance improvement of 3.5% GDP over three years, starting with cuts in wage calculations and conservation of social expenses. Growth is projected to 2.5% to 3% in the medium term, supported by security gains and reforms, while debt is expected to fall to 81% of GDP in 2029, with gross financing needs reduced.
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