El Salvador and the IMF (International Monetary Fund) have reached a loan agreement of 3.5 billion USD. The key point in the negotiations was the Bitcoin policy, as the IMF is still uncomfortable with El Salvador's acceptance of Bitcoin from 3 years ago.

The IMF agreed to lend El Salvador an amount of 1.4 billion USD, and in return, El Salvador agreed to loosen some of its current Bitcoin policies:

1. Merchants can choose to accept Bitcoin as a payment method on a voluntary basis, not mandatory.

2. Taxes will only be payable in USD.

3. The government's Bitcoin wallet, Chivo, will be sold to private entities. Other wallets from private companies will continue to operate. Many have reported that Chivo wallet has many technical issues and is not widely used.

Many news headlines will report negatively about this event, and at first glance, it may seem disappointing. However, after months of negotiations, the IMF could only force El Salvador to agree to these terms. This shows that Bitcoin remains the focus of the negotiations and the IMF truly values the strength of Bitcoin.

El Salvador will continue to support Bitcoin, seeing it as a national asset and may potentially buy more at a faster pace with the funds from the IMF. The people and merchants are still free to use Bitcoin as a means of exchange, and the Bitcoin City project will continue to be built. $BTC