El Salvador has agreed to make the use of bitcoin voluntary and to reduce the state's involvement in cryptocurrency-related projects. The decision was made as part of a loan agreement with the International Monetary Fund (IMF) amounting to $1.4 billion. Information about this appeared on the regulator's resources.

According to the agreement, taxes in El Salvador will only be accepted in US dollars, and the management of the state cryptocurrency wallet Chivo will gradually be phased out. Government institutions will limit the use of bitcoin in economic activities. The measures aim to reduce risks associated with the use of cryptocurrency and to lower the level of public debt.

The agreement must be approved by the IMF Executive Board. If a positive decision is made, the agreement will conclude a four-year cycle of negotiations between the authorities of El Salvador and the regulator.

Let us remind you that the authorities of El Salvador were the first to legalize bitcoin.