🚨El Salvador makes $BTC payments voluntary in $1.4B IMF loan deal🚨
El Salvador is set to make Bitcoin acceptance by merchants voluntary, reduce its involvement with the Chivo wallet, and limit public sector engagement with $BTC as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF).
The country will receive $1.4 billion over 40 months, aiming to reduce its debt-to-GDP ratio. In return, El Salvador agreed to IMF's conditions, including only accepting taxes in US dollars and gradually scaling back government involvement in $BTC .
El Salvador has been buying Bitcoin since 2021 and now holds around 5,969 Bitcoin, worth about $602 million. The agreement, which still requires IMF Executive Board approval, ends four years of negotiations and marks a shift away from President Nayib Bukele's Bitcoin push.
Despite Bukele's stance, the IMF has long criticized Bitcoin’s speculative nature. The deal could unlock additional loans from other institutions, totaling over $3.5 billion. A recent survey showed that 92% of Salvadorans don't use Bitcoin for transactions, up from 88% in 2023.
