According to CryptoGlobe, the International Monetary Fund (IMF) announced a staff-level agreement with El Salvador for a $1.4 billion loan under its Extended Fund Facility on December 18, 2024. The deal, pending approval by the IMF's Executive Board by February 2025, requires El Salvador to implement fiscal reforms and limit Bitcoin's role in its economy. While Bitcoin will remain legal tender, its practical use will be reduced, as businesses will no longer be required to accept it, and government involvement will decrease. This move could make Bitcoin's legal tender status largely symbolic. The agreement aims to stabilize El Salvador's economy, reduce public debt, and attract international funding, with the IMF projecting steady economic growth supported by remittances and tourism.
IMF's $1.4B Deal May Limit Bitcoin's Role in El Salvador by 2025
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