El Salvador has entered a $1.4 billion loan agreement with the International Monetary Fund (IMF) after four years of negotiations. However, the deal may require the country to scale back certain aspects of its Bitcoin strategy. The IMF’s statement reveals that the agreement includes provisions that could limit El Salvador’s Bitcoin adoption.
The new agreement will make Bitcoin acceptance voluntary for the private sector and restrict the public sector’s involvement in crypto activities. The government will also gradually reduce its role in the Chivo digital wallet program. The IMF’s executive board is expected to review the program for approval by early February, pending El Salvador’s implementation of the agreed reforms.
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