Is El Salvador Stripping Bitcoin of Legal Tender Status Under IMF Pressure?
The future of Bitcoin in El Salvador hangs in the balance. This decision comes after nearly two years of pressure from the International Monetary Fund (IMF), which set a condition to 'reduce Bitcoin's risk' in exchange for a crucial $1.4 billion funding deal. Has El Salvador finally succumbed?
Since El Salvador legalized Bitcoin as a form of legal tender in 2025, the IMF has pressured the Central American country to step away from Bitcoin and embrace traditional financial policies. The IMF has repeatedly expressed concerns about the volatility and potential risks associated with Bitcoin adoption.
El Salvador has agreed to scale back its crypto agenda in exchange for a $1.4 billion loan from the International Monetary Fund (IMF), marking a shift in the country's quest to become a crypto haven. Sources indicate that the legislative assembly passed the reforms while the government aims to secure the $1.4 billion funding deal from the International Monetary Fund (IMF) that is vital for the nation's economic stability.
Is this a complete reversal for El Salvador's Bitcoin experiment, or a strategic compromise to secure much-needed funding? Stay tuned for updates as this story develops.