Official announcements from El Salvador's government or international financial institutions

El Salvador to Make Bitcoin Acceptance Voluntary, Unlocking $1.3B IMF Loan and Up to $3B in Funding

Dec 9, 2024, 03:14 PM

El Salvador is set to adjust its Bitcoin laws to secure a $1.3 billion loan from the International Monetary Fund (IMF). The Central American nation plans to remove the mandatory Bitcoin acceptance requirement for businesses, making it voluntary instead. This marks a significant shift from its pioneering move in 2021 when it became the first country to adopt Bitcoin as legal tender and required businesses to accept it as payment. The adjustment comes as El Salvador aims to finalize the loan agreement with the IMF within the next two to three weeks. The IMF stipulated that Bitcoin acceptance must be optional to unlock the funding. The change could also pave the way for additional loans from international lenders such as the World Bank and the Inter-American Development Bank, potentially unlocking up to $3 billion in total. By scaling back its Bitcoin ambitions, El Salvador hopes to address these concerns and secure much-needed financial support.