El Salvador Relaxes Bitcoin Rules To Seal $1.3 Billion Loan
El Salvador is close to finalizing a $1.3 billion loan agreement with the International Monetary Fund (IMF), expected within two to three weeks.
The deal is contingent on significant changes to the country’s Bitcoin policy and measures to reduce its fiscal deficit, Financial Times reported, quoting sources.
The IMF delegation, currently in San Salvador, is negotiating terms with President Nayib Bukele‘s administration.
The agreement, pending IMF board approval, is anticipated to unlock an additional $1 billion in lending from the World Bank and another $1 billion from the Inter-American Development Bank over the coming years.
The IMF has consistently expressed concerns over El Salvador’s pioneering adoption of Bitcoin as legal tender, citing risks to financial stability.
Under the proposed terms, businesses in El Salvador will no longer be required by law to accept Bitcoin as payment, although they may continue to …
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