El Salvador is planning to scale back its cryptocurrency policies in order to secure a $1.3 billion loan from the International Monetary Fund (IMF). This includes removing the legal requirement for businesses to accept Bitcoin as a form of payment, which was implemented in 2021.
According to reports from the Finance Times, the deal is expected to be finalized in the near future. This change in policy would significantly alter El Salvador’s previous stance on Bitcoin. The country and its president, Nayib Bukele, have faced criticism from various international financial institutions, including the IMF.
Aside from the IMF loan, this agreement could also help unlock approximately $1 billion in financing from the World Bank and another $1 billion from the Inter-American Development Bank over the next few years. This could potentially provide a boost to the country’s economy.
