As per an article published by Bloomberg, the International Monetary Fund (IMF) has sanctioned a loan of $1.3 billion to be given to El Salvador. The adoption of Bitcoin was among the reasons compelling the IMF to give the amount to this country of Central America.
IMF speculates to lend $1.3 billion to El Salvador
Douglas Rodriguez (El Salvadoran central bank’s President), while appearing in an interview, stated that the authorities had pushed the IMF by elaborating that the adoption of Bitcoin is seemingly more advantageous for the country, and they had firstly scheduled for it. The purpose at the back is that the volatility of Bitcoin’s price while being on the rise can assist the El Salvadoran economy is surging this year above than expected by the forecasts approximately across the nine percent. He also mentioned that the sole threats for the respective economy in his consideration are known as upside risks. This counts to be one among the arguments which El Salvador gave to the Monetary Fund when discussing the loan of $1.3B for El Salvador.
In November, an examination of the latest review showing the finance and economics of the country will be done by the IMF, based on which the organization will resume the discussion about the loan. Back in June, El Salvador was warned by the IMF for its adoption of Bitcoin, stating that several regulatory and financial issues may be caused by the respective move. Another warning was given by Moody’s Investor Service, which pointed out that it would become difficult for El Salvador to convince the IMF to give it a loan after the Bitcoin adoption.
McDonald and Starbucks begin accepting Bitcoin
Through the adoption of Bitcoin to be a legitimate source of payment, El Salvadoran authorities envisioned assisting the 75% of the population existing in the country, being unbanked, to obtain access to services of banking and enter the financial system. Presently, the residents of the country are utilizing the Chivo wallet (being officially provided by the government for the holding and trade of Bitcoin), which initially provides $30 in BTC to everyone. Starbucks, McDonald’s, and other such businesses, as well as local stores, have begun accepting BTC in return for selling their services and goods. The government of the country also intends to utilize the platform of Bitcoin for remittances and stop having leverage by giants like MoneyGram and Western Union.