Bank

America

World

Bitcoin

<ul class="wp-block-list">
 <li>El Salvador has agreed with the IMF to scale back bitcoin activities for a $1.4 billion loan.</li>
 <li>Additional funding could push the total financing package above $3.5 billion.</li>
</ul>
El Salvador, the first country to adopt Bitcoin as a legal tender, agrees to limit Bitcoin-related activities in exchange for a $1.4 billion loan from the International Monetary Fund (IMF).&nbsp;
Recently, El Salvador obtained a staff-level agreement with the IMF for a 40-month Extended Fund Facility (EFF) arrangement, to support the government’s economic reforms. The agreement approval is subjected to the IMF’s Executive Board.&nbsp;
As per the agreement, El Salvador has to <a href="https://thenewscrypto.com/el-salvador-may-amend-bitcoin-policy-amid-1-3b-imf-loan-talks/" target="_blank" rel="noopener noreferrer nofollow">agree</a> that the businesses will no longer accept Bitcoin, and the government’s participation in Bitcoin-related activities, including the Chivo e-wallet, to be limited. Moreover, the tax payments will be in U.S. dollars.&nbsp;
This reflects a notable policy change, which balances the government’s initial interest in Bitcoin with the <a href="https://x.com/IMFNews/status/1869479893215678468" target="_blank" rel="noopener noreferrer nofollow">IMF</a>‘s concerns about financial stability. Besides, the agreement also aims to stabilize El Salvador’s economy, such as rising public debt and inflation.&nbsp;
While the IMF’s approval is pending, it’s expected to bring additional funding. It will potentially bring the total financing package to over $3.5 billion.
 International Monetary Fund <a href="https://www.imf.org/en/News/Articles/2024/12/18/pr-24485-el-salvador-imf-reaches-staff-level-agreement-on-an-eff-arrangement" target="_blank" rel="noopener noreferrer nofollow">stated</a>,
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “The program is also expected to catalyze additional financial support from the World Bank, the Inter-American Development Bank, and other regional development banks (Central American Bank for Economic Integration, CABEI, Development Bank of Latin America and the Caribbean, CAF) for a combined overall financing package of over US$ 3.5 billion over the program period.”
</blockquote>
Furthermore, in September 2021, El Salvador became the first country to adopt Bitcoin as legal tender. <a href="https://x.com/nayibbukele" target="_blank" rel="noopener noreferrer nofollow">President</a> Nayib Bukele’s administration has promoted <a href="https://thenewscrypto.com/el-salvador-and-argentina-unite-to-foster-crypto-ecosystem-in-latin-america/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a> to support financial inclusion and draw investment. However, it has faced challenges like the volatility of Bitcoin and the limited adoption among citizens.
Highlighted Crypto News&nbsp;
<a href="https://thenewscrypto.com/will-dogwifhat-wif-fight-back-after-a-13-drop/" target="_blank" rel="noopener noreferrer nofollow">Will Dogwifhat (WIF) Fight Back After a 13% Drop?</a>

El Salvador to Pull Back Bitcoin Efforts for a $1.4 Billion IMF Loan

TheNewsCrypto

Other articles published on Dec 19, 2024

Santa Rides Shiba (SANTSHIB) Solana Memecoin to Surge 19,000% Ahead of Exchange Listing, While PE...

Tokenized US Treasury Bonds Exceed $3 Billion in Market Value

Metaplanet to Begin Trading on U.S. OTCQX Market

Expert Says Once XRP Clears this Resistance, Next Is $4

Crypto Anonymity Fades: U.S. Sets Precedent with First Bitcoin Tax Evasion Conviction

Vladimir Putin admits Russian inflation is an ‘alarming signal’ – Is BRICS collapsing?

Join our free newsletter for daily crypto updates!