But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.
that is impossible, because the use of the money is directly supervised by the imf, which means el salvador only uses the money for the original purpose of the debt for fiscal sustainability by reducing public debt and strengthening external and financial buffers. even if they want to buy bitcoin, the funds for that will come from the state budget or other funds, the point is it does not come from the imf or other institutions.
Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?
remember that their goal to accumulate bitcoin is not only to get some profit but more than that they want to increase financial inclusion in the country, make el savador a foreign investment and tourism destination that is friendly to bitcoin, and reduce dependence on the us dollar. meaning el savador without pledging their bitcoins to lending platforms, they have already gained more benefits which are more meaningful than just monthly interest.. moreover by law they cannot put their bitcoins on lending platforms, since it is a national reserve, and it must be well maintained and its use must go through congress.