The International Monetary Fund (IMF) has placed a ban on voluntary accumulation of bitcoin by the public sector in El Salvador, including the purchase and mining of the first cryptocurrency.
The ban applies to all hot and cold crypto wallets managed by government entities, including the Chivo crypto wallet, the National Bitcoin Agency, the Rio Lempa Hydroelectric Commission (CEL), and other entities.
At the same time, bitcoins previously confiscated or seized by law enforcement agencies are not subject to the ban and may remain in the possession of the Salvadoran authorities.
The document states that El Salvador can no longer issue debt or tokenized instruments denominated in bitcoin if they create liabilities for the public sector.
The above requirement is part of the extended $1,4 billion credit program, according to a technical memorandum published on the IMF website on March 3.
Let us recall that under the agreement with the IMF, El Salvador made changes to the law on bitcoin : now its use is purely voluntary, tax payments are accepted only in US dollars, and the participation of government agencies in Bitcoin -projects will be limited.
