Douglas Rodriguez of El Salvador Says Bitcoin Adoption Not an Obstacle in Loan Agreement with IMF

Sahaj  |  Oct 20, 2021

In accordance with the President of the Central Bank of El Salvador, Douglas Rodriguez, the adoption of Bitcoin by El Salvador is not going to be an obstacle for the government to reach the mark of a $1.3 billion loan agreement with the IMF. As revealed, the cryptocurrency will be losing its reputation as a speculative asset and prove its use as a legitimate payment system. 

Douglas Rodriguez Says El Salvador Adopting Bitcoin Will Not Affect Loan Agreement with IMF

Douglas Rodriguez disclosed that he expects the notorious price volatility in Bitcoin to help the economy expand over 9% that the bank had forecast for this year.  

In a virtual interview conducted with San Salvador, Rodriguez said:

“We don’t see any risks. Perhaps, upside risks. Bitcoin will “become a payment system, a system for financial inclusion.”

Well, this is something that Douglas said the nation has put focus on the IMF amid talks for a potential $1.3 billion extended fund facility. In addition to this, it should be noted that the IMF is expected to release its latest review on the finances of El Salvador and Economics next month, which could give a head start to renewed discussions. 

Along with this, the investors are closely watching the drawn-out negotiations, specifically in the shadow of controversial political decisions under the presidency of Nayib Bukele, such as replacing top judges and making Bitcoin a legal tender. 

Renewed Role of Bitcoin 

As per the statement released by Rodriguez, the adoption of Bitcoin by Salvadorans to access more payment methods in a nation where a majority of citizens are unbanked. 

Last month, the citizens of El Salvador started utilizing the Chivo wallet of the government, which came preloaded with $30 in Bitcoin, in order to purchase the dips and sell at rallies with a fractional amount of cryptocurrencies.

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