The IMF pleaded with El Salvador to outlaw the use of Bitcoins as legal tender.
On Twitter, Bukele declared he was presenting two legislation to the National Assembly.
According to El Salvador’s President Nayib Bukele’s announcement, the nation intends to repurchase $1.6 billion in dollar-denominated bonds from the market. Last year, the country of Central America made Bitcoin legal money in a historic step.
Traditionalists have since claimed that El Salvador’s financial situation would be weakened as a result of the action and that the country would be unable to pay off its arrears. Hopefully, this additional step will allay default-related fears that have been raised frequently.
Repurchase at Market Rates
On Twitter, Bukele declared he was presenting two legislation to the National Assembly to make a “transparent, public and voluntary purchase offer” for all holders of Salvadoran government debt bonds from 2023 to 2025.
The President tweeted:
“Today we are sending 2 bills to Congress to ensure that we have the available funds to make a transparent, public and voluntary purchase offer to all the holders of Salvadoran sovereign debt bonds from 2023 to 2025 at whatever the market price is at the time of each transaction.”
Furthermore, President said that the bonds would be repurchased at market rates and the process would begin once the paperwork was completed, he added. Bukele estimated that “the purchasing operation will start in 6 weeks (the time it takes to file all the paperwork).”
Earlier this year, the IMF pleaded with El Salvador to outlaw the use of Bitcoins as legal tender. According to the report, adopting crypto as legal cash posed “large risks” to financial and market integrity, financial stability, and consumer protection. It further said that the same might result in future liabilities.