Shift in Bitcoin Policy
El Salvador plans to make bitcoin acceptance optional for businesses, marking a significant shift from its 2021 law requiring businesses to accept the cryptocurrency as legal tender. This policy change aims to unlock over $3 billion in international loans, according to the Financial Times.IMF Loan Unlocks Further Funding
The voluntary bitcoin policy would enable El Salvador to finalize a $1.3 billion loan with the International Monetary Fund (IMF). This agreement would then pave the way for additional $1 billion loans from the World Bank and the Inter-American Development Bank. The IMF had previously raised concerns about bitcoin’s risks to financial stability and integrity.Mixed Bitcoin Adoption Results
Since adopting bitcoin as legal tender in 2021, El Salvador has experienced limited domestic adoption. President Nayib Bukele acknowledged the mixed outcomes of the nation’s bitcoin experiment, even as the government continues to hold 5,750 BTC worth approximately $570 million.Accompanying Economic Measures
To secure the IMF loan, El Salvador has agreed to additional measures, including reducing its budget deficit, passing anti-corruption laws, and increasing reserves. The shift in bitcoin policy aligns with the IMF’s recommendations to narrow the scope of the nation’s cryptocurrency ambitions.Bitcoin Reaches Milestone
The news coincides with bitcoin’s price surpassing $99,000, continuing its bullish momentum following recent U.S. election results favorable to crypto. This development highlights the broader global interest in cryptocurrency amidst El Salvador’s evolving approach to bitcoin integration.
Read the full article on
theblock.
