PANews December 19 news, according to Cointelegraph, El Salvador has reached a $1.4 billion loan agreement with the International Monetary Fund (IMF), planning to receive funding support over the next 40 months. As part of the agreement, the country will make it voluntary for merchants to accept Bitcoin payments while gradually reducing the government's involvement in Bitcoin-related projects, including a gradual withdrawal from managing the state-supported wallet app Chivo.
The IMF stated that this move will significantly reduce the potential risks associated with Bitcoin projects while clearly specifying that the public sector is limited to specific participation in Bitcoin economic activities. Additionally, taxes will be paid only in US dollars, not Bitcoin. The agreement still requires approval from the IMF's executive board, marking the end of four years of negotiations with the IMF since El Salvador adopted Bitcoin as legal tender in June 2021. The IMF has previously warned that the speculative nature of Bitcoin could pose financial risks to the country. The agreement will also facilitate additional financing from institutions such as the World Bank, with total financing exceeding $3.5 billion.
Nevertheless, El Salvador's president's Bitcoin advisor Max Keiser expressed disdain on social media X, claiming that Bitcoin usage in the country has 'never been so active and continues to grow.' However, surveys show that 92% of Salvadorans have not used Bitcoin for transactions, an increase from 88% in 2023.
