El Salvador would also receive $1 billion in lending from the World Bank and $1 billion from the Inter-American Development Bank
\nUnder the IMF agreement, El Salvador would change a legal requirement making businesses accept Bitcoin as payment
\nSince 2021, the IMF has been against El Salvador\u2019s Bitcoin Law, asking the government to \u201cnarrow its scope\u201d<\/p>\n
El Salvador is reportedly reducing its Bitcoin ambitions as it gets ready to receive a $1.3 billion loan from the International Monetary Fund (IMF).<\/p>\n
The Financial Times<\/a> reports that the Central American country, which was the first to accept Bitcoin as legal tender<\/a> in 2021, is expected to reach a deal in the next few weeks with El Salvador\u2019s President Nayib Bukele\u2019s<\/a> government.<\/p>\n The deal is also expected to unlock a further $1 billion in lending from the World Bank and $1 billion from the Inter-American Development Bank over the next few years.<\/p>\n Under the proposed plans, El Salvador<\/a> would change a legal requirement making businesses accept Bitcoin as payment, making it optional instead. The government would also reduce the budget deficit by 3.5% of GDP over three years through spending cuts and tax rises while boosting reserves from $11 billion to $15 billion.<\/p>\n Following El Salvador\u2019s adoption of Bitcoin in 2021, the IMF sent a statement<\/a> in November 2021 \u201crecommend[ing] narrowing the scope of the Bitcoin law\u201d while \u201cstrengthening the regulation and supervision of the new payment system.\u201d<\/p>\n This was again called for in January 2022 when the IMF advised El Salvador to reconsider its decision on Bitcoin as the country\u2019s legal tender<\/a>. More recently, the IMF recommended El Salvador limit the public\u2019s exposure to Bitcoin<\/a>.<\/p>\n Despite the advisories, El Salvador and its president remain committed to Bitcoin, going on to buy more of the asset<\/a> during price dips.<\/p>\n With Bitcoin reaching $100,000<\/a> last week for the first time, Bukele posted a tweet on X, showcasing its Bitcoin balance was now worth more than $600 million<\/a>.<\/p>\n https:\/\/t.co\/QVvFbQ7woa<\/a> pic.twitter.com\/WiOAYg6Ztx<\/a><\/p>\n \u2014 Nayib Bukele (@nayibbukele) December 5, 2024<\/a><\/p>\n\n The post El Salvador to change Bitcoin plans to secure $1.3bn IMF loan<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" El Salvador would also receive $1 billion in lending from the World Bank and $1 billion from the Inter-American Development Bank Under the IMF agreement, El Salvador would change a legal requirement making businesses accept Bitcoin as payment Since 2021, the IMF has been against El Salvador\u2019s Bitcoin Law, asking the government to \u201cnarrow its […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2020","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=2020"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2020\/revisions"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=2020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=2020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=2020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}IMF against El Salvador\u2019s Bitcoin adoption<\/h2>\n