El Salvador Rushes to Approve Bitcoin Law Amendment to Comply With IMF Loan Terms
El Salvador has amended its Bitcoin legislation to comply with conditions set by the International Monetary Fund (IMF) for a $1.4 billion loan. The alterations mean that accepting Bitcoin for tax payments will cease and the government's Chivo wallet, initially promoted for digital transactions, will be gradually removed. Passed with significant support in parliament, this law aligns with the IMF's critique of the country's previous pro-Bitcoin stance, which was claimed to pose macroeconomic risks. Despite IMF pressure, El Salvador continues to purchase Bitcoin, recently adding to its national reserves. However, public adoption remains lukewarm, with surveys indicating limited use among citizens. The change highlights a shift in the government's approach toward cryptocurrency amid financial reforms required for IMF funding.
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