El Salvador Scales Back Bitcoin Adoption Under IMF Loan Terms

• El Salvador secured a $1.4 billion IMF loan by scaling back Bitcoin policies.  
• Bitcoin is no longer mandatory for merchants and restricted to public sector use.  
• The government reduces involvement in the Chivo wallet amid financial transparency reforms. 

El Salvador will scale back its Bitcoin policies to secure a $1.4 billion loan from the International Monetary Fund (IMF). Sources say the deal includes fiscal measures and expects $3.5 billion in additional financing from the World Bank and regional banks.

Read also: Bitget Secures BSP License in El Salvador to Expand Bitcoin Services

Also, the reforms will make Bitcoin acceptable to merchants voluntarily, limit public sector Bitcoin-related activities, and reduce the government’s involvement in the Chivo wallet. The move reverses President Nayib Bukele’s 2021 initiative, raising questions about Bitcoin’s role in national economies.

Beyond voluntary Bitcoin acceptance, th…

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