El Salvador Strikes $1.4 Billion IMF Deal After Scaling Back Bitcoin Policies

El Salvador secured a $1.4 billion loan deal with the IMF after agreeing to scale back its bitcoin policies, making cryptocurrency acceptance voluntary for businesses and limiting public sector involvement. The deal aims to stabilize the country's economy, with bitcoin's recent rally boosting the value of El Salvador's holdings. The BBC reports: In 2021, El Salvador became the first country in the world to make bitcoin legal tender. This week, the cryptocurrency briefly hit a fresh record high of more than $108,000.

'The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies,' the IMF announcement said. 'Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.' Last Friday, El Salvdaor purchased more than 11 BTC worth $1.07 million and executed another 11 BTC purchase on Sunday, according to crypto data platform Arkham. El Salvador's President, Nayib Bukele, is ramping up buys 'with an interim goal of acquiring 20,000 more Bitcoin,' reports the Daily Hodl.

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