cryptojournalist
Changes to Bitcoin Policy
El Salvador, the first country to make Bitcoin legal tender, is planning to scale back its Bitcoin rules to secure a $1.3 billion loan from the International Monetary Fund (IMF). According to reports from December 9, the country hopes to finalize an agreement soon, which would mean changes to its Bitcoin Law.
What the Changes Mean
The main change would be removing the legal requirement for businesses to accept Bitcoin as payment, making it voluntary instead. This shift is expected to unlock additional loans—$1 billion from the World Bank and another $1 billion from the Inter-American Development Bank in the near future.
IMF’s Concerns with Bitcoin
The IMF has been critical of El Salvador’s decision to adopt Bitcoin since it was made legal tender in 2021. The organization has warned that Bitcoin could harm financial stability and has raised concerns about the complications it causes for both businesses and consumers when deciding between Bitcoin and traditional money.
El Salvador’s Bitcoin Purchases
Since passing the Bitcoin Law, El Salvador has been actively buying Bitcoin. The government made its first Bitcoin purchase of 200 BTC in 2021 and now holds over 5,900 BTC as of late 2024. The value of these holdings rose significantly as Bitcoin reached over $100,000 in December, giving El Salvador over $300 million in unrealized gains.
