Bitcoin

Drops

Reserve

El Salvador has agreed to make Bitcoin merchant acceptance voluntary and reduce its involvement with the state-backed Chivo wallet as part of a $1.4 billion loan deal with the International Monetary Fund (IMF).&nbsp;The <a href="https://www.imf.org/en/News/Articles/2024/12/18/pr-24485-el-salvador-imf-reaches-staff-level-agreement-on-an-eff-arrangement" rel="noopener noreferrer nofollow">agreement</a>, spanning 40 months, aims to improve the country’s debt-to-GDP ratio and includes significant changes to the government’s Bitcoin policies.<div class="wp-block-image"><figure class="aligncenter size-large"><img width="501" height="484" src="https://www.cryptotimes.io/wp-content/uploads/2024/12/El-Salvador-Agrees-to-Voluntary-Bitcoin-Acceptance-in-1.4B-IMF-Loan-Deal-501x484.jpg" alt="El Salvador Agrees to Voluntary Bitcoin Acceptance in 1.4B IMF Loan Deal" class="wp-image-224475"><figcaption class="wp-element-caption"> Source:&nbsp;<a href="https://x.com/IMFNews/status/1869479893215678468" rel="noopener noreferrer nofollow">X</a></figcaption></figure></div>Under the new terms, the private sector will no longer be required to accept Bitcoin and public sector engagement with Bitcoin-related activities will be limited. The IMF noted that these measures will help minimize the risks associated with Bitcoin, a move that aligns with the Fund’s policies.&nbsp;Additionally, taxes will be paid only in U.S. dollars, El Salvador’s official currency and the government will gradually unwind its involvement in the Chivo wallet, which has seen limited use.El Salvador, which made Bitcoin legal tender in 2021, currently holds around 5,969 BTC, worth about $602 million. Despite the government’s push for Bitcoin adoption, a recent survey revealed that 92% of Salvadorans don’t use Bitcoin for transactions.This agreement marks the end of a lengthy negotiation process and is subject to approval by the IMF Executive Board. It also paves the way for further financial support from global institutions, with a total financing deal expected to exceed $3.5 billion.While the IMF has consistently expressed concerns about Bitcoin’s speculative risks, President Nayib Bukele’s Bitcoin adviser, Max Keiser, dismissed the IMF’s stance, calling the agreement “nonsense” and reaffirming Bitcoin’s voluntary use in El Salvador.<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Also Read: <a href="https://www.cryptotimes.io/2024/12/19/bitcoin-drops-below-100k-as-powell-rejects-btc-reserve-plan/" rel="noopener noreferrer nofollow">Bitcoin Drops Below $100k as Powell Rejects BTC Reserve Plan</a></blockquote>

El Salvador Accepts Voluntary Bitcoin Use in $1.4B IMF Deal

The Crypto Times

Other articles published on Dec 19, 2024

Bitcoin price has legs above $100K despite holders booking record profits — Analysis

Crypto Market Update: Bitcoin Rallies, TON Wallet Launches, and $2.2 Billion in Hacks Uncovered

Santa’s Crypto Picks: 3 Altcoins to Watch as the Market Heats Up

Michael Saylor, Elon Musk's Bitcoin 2020 Discussion Flashback: Details

Kicking Yourself Over Bitcoin Cash? This New Layer 1 Project is Making Splashes as the Best Crypt...

BTC reclaims $100K but weekly chart forming ‘bearish engulfing’ candlestick

Join our free newsletter for daily crypto updates!