El Salvador has reached a $1.4 billion agreement with the International Monetary Fund (IMF), which imposes significant restrictions on bitcoin-related activities within the country. The deal includes measures to limit public sector purchases of bitcoin and to gradually phase out the use of the Chivo wallet, a digital wallet launched by the government to facilitate bitcoin transactions. This development marks a setback for El Salvador's ambitious cryptocurrency initiatives and reflects growing global regulatory scrutiny. The agreement underscores the challenges faced by nations attempting to integrate cryptocurrencies into their economies amidst regulatory pressures.