El Salvador to Drop Bitcoin Payment Mandate for $3.3B Loan

Title: “El Salvador to drop mandatory Bitcoin payments for businesses; receives $1.3 billion loan from IMF”

El Salvador, the first country to adopt Bitcoin (BTC) as a legal tender in 2021, had faced strong criticism and pressure from the International Monetary Fund (IMF). The country had been trying to get a credit line from the IMF to solve its financial problems.

However, the IMF required changes to El Salvador’s Bitcoin bill. After a two-year negotiation deadlock, the country is now planning to remove the legal requirement for businesses to accept Bitcoin as a payment method. Instead, companies will be able to decide for themselves if they want to accept Bitcoin payments.

The agreement is expected to be reached within two to three weeks. In exchange, El Salvador will receive a $1.3 billion loan from the IMF. The loan will be accompanied by two others – a $1 billion loan from the World Bank and a $1 billion loan from the Inter-American Development Bank, totaling a possible $3.3 billion in loans for El Salvador.

In order to reach the agreement with the IMF, El Salvador will have to reduce its government deficit. The government plans to cut the budget deficit by 3.5% of GDP over the next three years through spending cuts and tax increases. It will also pass an anti-corruption bill and increase foreign exchange reserves from $11 billion to $15 billion.

The IMF has always been against the adoption of digital currencies in El Salvador, citing risks to financial stability and integrity. The IMF often calls on the government to stop accepting cryptocurrencies as legal tender. In October, the IMF recommended reducing Bitcoin-related policies and strengthening the regulatory framework for digital assets.

See also  FDIC Discourages Banks from Using Public Blockchain Networks

Source

Please follow and like us:
Pin Share
Join Our Telegram Group

Join Our Telegram Group for the Latest Crypto News!

Stay ahead in the cryptocurrency market with timely updates, exclusive insights, and expert analysis. Join our Telegram group now and never miss out on important market movements!

Join Now

More From Author

El Salvador to Drop Forced Bitcoin Payments, Secures $3.3B Loan Package

Dogecoin Drops 10.3% in 24 Hours Amid Broader Market Volatility; $0.4 Support Level at Risk

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletter!

Top 10 Cryptocurrencies

Top 10 Cryptocurrencies

# Name Price 24h %

Top Gainers & Losers

Top 5 Gainers (24h)
Loading gainers...
Failed to load gainers. Please try again later.
Top 5 Losers (24h)
Loading losers...
Failed to load losers. Please try again later.