El Salvador has secured a $1.4 billion loan deal with the IMF, agreeing to make Bitcoin acceptance voluntary for merchants and scale back government involvement in Bitcoin-related projects. The 40-month agreement aims to reduce the nation’s debt-to-GDP ratio, the IMF announced on Dec. 18.
The deal includes legal reforms confining public sector Bitcoin activities and ensuring taxes are paid exclusively in U.S. dollars. The state-backed Chivo wallet will also be gradually phased out.
Despite these changes, El Salvador’s National Bitcoin Office confirmed the country will continue accumulating Bitcoin, which it began purchasing in 2021. The nation currently holds 5,968.8 BTC, valued at approximately $602 million.
Source: Cointelegraph
