El Salvador secured a $1.4 billion loan from the IMF, agreeing to make Bitcoin acceptance by merchants voluntary and limit government involvement in Bitcoin-related activities. The measures aim to reduce the nation’s debt-to-GDP ratio.
The government will phase out its role in the Chivo wallet, and taxes will remain payable only in U.S. dollars, the country’s official currency. Public sector Bitcoin activities will also be restricted under the agreement, which awaits IMF Executive Board approval.
This marks a shift from El Salvador’s 2021 adoption of Bitcoin as legal tender, with the country currently holding 5,968 BTC worth $602 million.
Source: Cointelegraph
