Originally published on: December 09, 2024
El Salvador, known for its groundbreaking move to adopt Bitcoin as legal tender, is now facing pressure from the International Monetary Fund (IMF) to make changes to its BTC regulations.
Reports suggest that El Salvador is in talks with the IMF to finalize a $1.3 billion loan agreement, which would require amendments to its Bitcoin Law. Under this deal, businesses would no longer be obligated to accept Bitcoin as payment, making it a voluntary option.
Expected to be finalized within the next few weeks, this agreement could also pave the way for an additional $2 billion in lending from the World Bank and the Inter-American Development Bank over the coming years.
The IMF has been vocal about the risks associated with El Salvador’s adoption of Bitcoin as legal tender, cautioning against potential financial instability. Despite these warnings, El Salvador had been actively purchasing BTC since the implementation of the Bitcoin Law in September 2021.
Recently, Bitcoin’s price surged to all-time highs, resulting in substantial unrealized gains for El Salvador. As discussions between the IMF and the Salvadoran government continue, there are indications that adjustments to the Bitcoin Law are on the horizon.
Stay tuned for more updates on El Salvador’s evolving relationship with Bitcoin and the IMF. Don’t miss out on the latest insights and market trends by subscribing to our newsletter today. Get exclusive access to investment opportunities and strategic trading tips every Monday. Join us on this exciting journey towards financial growth and success.
