El Salvador gets IMF $1.4bn deal after scaling back bitcoin bet

Published On Dec 18, 2024, 10:55 PM

El Salvador has agreed to a $1.4 billion loan deal with the International Monetary Fund (IMF) after scaling back its controversial bitcoin adoption policy. As part of the deal, acceptance of bitcoin will now be voluntary for businesses, and public sector involvement in bitcoin transactions will be limited. This policy shift was made to address the risks associated with bitcoin, allowing El Salvador to secure financial support from the IMF amid economic challenges.

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The scaling back of bitcoin policies in El Salvador indicates a shift towards more cautious financial management, which may stabilize the country's economy. However, this could also lead to a decrease in the enthusiasm surrounding bitcoin investments in the region, putting downward pressure on cryptocurrency markets in the short term.

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