El Salvador’s struck a loan deal with the IMF and will make Bitcoin acceptance voluntary and roll back government involvement in Bitcoin-related projects.
El Salvador is set to make merchant acceptance of Bitcoin voluntary, unwind its involvement in its little-used Chivo wallet and make public sector engagement of Bitcoin-related economic activity “confined” as part of a $1.4 billion loan deal with the International Monetary Fund.
The Central American nation will get $1.4 billion from the IMF over the next 40 months after El Salvador agreed to measures aimed at dropping its debt-to-GDP ratio, the global lender said in a Dec. 18 statement.
“The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies. Legal reforms will make acceptance of Bitcoin by the private sector voluntary,” the IMF said.
