El Salvador, which made history by adopting Bitcoin as its official currency, is now reversing its decision.
According to the Financial Times, El Salvador is planning to finalize a $1.3 billion loan program with the IMF in the next two to three weeks. As part of this agreement, El Salvador will make adjustments regarding Bitcoin.
El Salvador is expected to come to terms with the International Monetary Fund in the coming weeks on a $1.3 billion loan program. In exchange for this agreement, the country will modify its use of Bitcoin as legal tender and work towards reducing government deficits. Sources familiar with the negotiations have revealed this information.
A team from the IMF is currently in San Salvador to work out the specifics of the deal with President Nayib Bukele’s administration, as reported by the FT.
As per the terms of the agreement with the IMF, El Salvador will no longer require businesses to accept Bitcoin as a form of payment. Instead, it will be optional.
It should be noted that the IMF had expressed concerns about El Salvador’s adoption of Bitcoin, citing potential risks to financial stability and integrity. The IMF had urged the Bukele government to cease using BTC as legal tender.
*This is not investment advice.
