El Salvador has agreed to relax its bitcoin policies and reduce the use of bitcoin in government transactions as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF). This move comes following concerns raised by the IMF regarding the risks associated with El Salvador's adoption of bitcoin as legal tender. The IMF believes that the volatility and speculative nature of cryptocurrencies could pose risks to the country. Under the terms of the IMF loan agreement, El Salvador will implement several reforms, including easing restrictions on the use of bitcoin in the private sector while prohibiting its use as legal tender or currency by the government.

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