🚨El Salvador makes Bitcoin payments voluntary in $1.4B IMF loan deal🚨
El Salvador is set to make $BTC 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 Bitcoin.
El Salvador has been buying Bitcoin since 2021 and now holds around 5,969 $BTC , 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.
