Under the agreement, El Salvador will make Bitcoin acceptance voluntary for the private sector while restricting public sector involvement.
After four years of negotiations, El Salvador entered a $1.4 billion loan agreement with the International Monetary Fund (IMF) Wednesday. The deal, however, may not be as sweet as it sounds.
Provisions on the agreement imply that if approved, El Salvador would have to scale back certain aspects of its Bitcoin strategy, according to a statement from the intergovernmental organization.
Initial details of the deal were disclosed earlier this month, with sources previously telling Decrypt the plan is focused on “supporting macroeconomic adjustment and structural reforms.”
Under the new agreement, El Salvador 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.
Under the agreement, El Salvador will make Bitcoin acceptance voluntary for the private sector while restricting public sector involvement.
After four years of negotiations, El Salvador entered a $1.4 billion loan agreement with the International Monetary Fund (IMF) Wednesday. The deal, however, may not be as sweet as it sounds.
Provisions on the agreement imply that if approved, El Salvador would have to scale back certain aspects of its Bitcoin strategy, according to a statement from the intergovernmental organization.
Initial details of the deal were disclosed earlier this month, with sources previously telling Decrypt the plan is focused on “supporting macroeconomic adjustment and structural reforms.”
Under the new agreement, El Salvador 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 agreement outlines a comprehensive reform agenda, including measures to strengthen anti-corruption frameworks and align banking regulations with international standards to improve financial stability and governance.
"The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies," IMF Deputy Director Luis Cubeddu and Mission Chief Raphael Espinoza wrote in the statement.
