El Salvador, a country that made history by adopting Bitcoin as its official currency, is now taking a step back. According to the Financial Times, El Salvador plans to enter into a $1.3 billion loan program with the International Monetary Fund (IMF) within the next two to three weeks. As part of this agreement, the country will make certain changes regarding its use of Bitcoin.
Sources familiar with the negotiations have stated that El Salvador expects to finalize an agreement with the IMF over the next two to three weeks. The agreement will involve a $1.3 billion loan program and will require El Salvador to make adjustments to its utilization of Bitcoin as legal tender, as well as decrease government deficits.
The Financial Times reports that an IMF delegation has arrived in San Salvador to discuss the specifics of the deal with President Nayib Bukele’s administration.
Under the terms of the agreement, El Salvador will no longer mandate businesses to accept Bitcoin as a form of payment. Instead, it will become optional for businesses to accept Bitcoin.
It is worth noting that the IMF initially expressed concerns about El Salvador’s adoption of Bitcoin, citing potential risks to financial stability and integrity. The IMF urged the Bukele government to cease accepting Bitcoin as legal tender.
Please note that this translation is for informational purposes only and does not constitute investment advice.