Bad News for Bitcoin! El Salvador Limits Bitcoin Use at Government Level
In a surprising twist, El Salvador — the poster child for Bitcoin adoption — is scaling back its government involvement with Bitcoin. And yes, the IMF is behind it. As part of a new $1.4 billion loan deal, El Salvador agreed to limit its role in the national Bitcoin wallet Chivo and shift Bitcoin development to the private sector. In classic IMF style, the deal comes with "reforms," meaning businesses can now choose whether to accept Bitcoin — no more mandatory adoption.
But it’s not all doom and gloom. Experts say the move could actually strengthen El Salvador’s economy by lowering its debt-to-GDP ratio. Translation: The country gets the cash, avoids a debt crisis, and maybe even looks good doing it.
Bitcoin Reacts (Like It Always Does)
Bitcoin wasn't happy. The price dropped 5% to $99,673 as traders hit the panic button. But El Salvador's president had a plot twist of his own — announcing the country will continue buying 1 BTC every day. Call it damage control, call it a flex — either way, it’s got the crypto crowd nodding in approval.
The Big Takeaway
This isn’t El Salvador quitting Bitcoin; it’s just playing smarter. Get the IMF’s money, stabilize the economy, and quietly keep stacking sats. Classic chess move.