El Salvador Alters Bitcoin Law for IMF Loan

El Salvador is negotiating a $1.3 billion loan with the International Monetary Fund (IMF), which involves altering its Bitcoin policies by making Bitcoin acceptance optional rather than mandatory for businesses. This financial agreement, expected to be finalized soon, could also unlock additional funding from the World Bank and the Inter-American Development Bank. To meet the loan's conditions, El Salvador plans to implement fiscal reforms, including reducing the budget deficit, enacting anti-corruption laws, and increasing financial reserves. Despite the IMF's scrutiny, El Salvador's Bitcoin investments have resulted in significant unrealized gains, though actual usage among Salvadorans remains low. President Nayib Bukele's administration has been under international criticism but is working to improve ties with global entities and enhance the country's economic standing. Meanwhile, El Salvador's initiative has inspired other countries, like Bhutan, to increase their Bitcoin reserves.