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El Salvador, the first country in the world to accept Bitcoin as legal tender, is reportedly scaling back its BTC ambitions under pressure from the International Monetary Fund (IMF).
El Salvador expects to reach an agreement with the IMF on a $1.3 billion loan deal in return for changes to its Bitcoin Law, the Financial Times <a data-ct-non-breakable="null" href="https://ctmain.slack.com/archives/C051Z8HCML2/p1733746621229469?thread_ts=1733746569.357809&amp;cid=C051Z8HCML2" rel="noopener noreferrer nofollow" target="null" text="null" title="null">reported</a> on Dec. 9, citing people familiar with the matter.
If confirmed, the deal would obligate the government of El Salvador to drop a legal requirement for businesses to accept Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) as payment, making it a voluntary payment method.
Expected to be finalized in the next two or three weeks, the deal is also expected to unlock another $1 billion of lending from the World Bank and $1 billion from the Inter-American Development Bank over the next few years.
The IMF has long been opposed to El Salvador’s adoption of Bitcoin, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-issues-veiled-warning-against-el-salvador-s-bitcoin-law" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/imf-issues-veiled-warning-against-el-salvador-s-bitcoin-law">repeatedly warning the government</a> and Salvadoran President Nayib Bukele of the financial stability risks behind the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/september-7-is-bitcoin-day-in-el-salvador-as-btc-becomes-legal-tender" rel="noopener noreferrer nofollow" target="null" text="null" title="null">decision to adopt Bitcoin as legal tender</a> in September 2021.
The IMF and the Salvadoran government have been <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-pressures-el-salvador-overhaul-bitcoin-regulations" rel="noopener noreferrer nofollow" target="null" text="null" title="null">discussing the $1.3 billion loan</a> and possible changes to El Salvador’s Bitcoin Law since at least October.
This is a developing story, and further information will be added as it becomes available.

El Salvador plans Bitcoin policy changes to secure $1.3B IMF loan — FT

Cointelegraph

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