El Salvador May Amend Bitcoin Policy Amid $1.3B IMF Loan Talks
- The agreement, if finalized, would force El Salvador to remove a mandatory payment requirement for BTC.
- The IMF has long voiced its disapproval of El Salvador’s plan to use Bitcoin as legal currency.
Under pressure from the International Monetary Fund ( IMF ), El Salvador, the world’s first government to adopt Bitcoin as legal cash, is allegedly reducing its BTC aspirations. According to the Financial Times, which cited sources familiar with the situation, El Salvador is reportedly planning to amend its Bitcoin policy in exchange for a $1.3 billion loan from the International Monetary Fund (IMF), as reported on December 9th.
The agreement, if finalized, would force El Salvador’s government to remove a mandatory payment requirement for Bitcoin, turning it into an optional payment option for companies.
Long Awaited Loan
With the deal’s finalization anticipated within the next two or three weeks, the World Bank and the Inter-American Development Bank are both likely to lend an additional $1 billion over the following few years.
The International Monetary Fund has long voiced its disapproval of El Salvador’s plan to use Bitcoin as legal currency, and President Nayib Bukele and his administration have received repeated warnings from the IMF about the dangers to the country’s financial stability presented by this choice.
Since at least October, the Salvadoran government and the International Monetary Fund have been in discussions on the $1.3 billion loan and potential amendments to El Salvador’s Bitcoin Law. President Nayib Bukele of El Salvador used social media to boast about the country’s untapped gains from Bitcoin investments when the price of the cryptocurrency surpassed $100,000 for the first time on December 5th.
The country has reportedly put almost $270 million into Bitcoin since its first introduction, according to Bukele’s latest report. There has been no sale of Bitcoin and the portfolio shows that the unrealized earnings are more than $333 million.
Highlighted Crypto News Today:
Pudgy Penguins Surpass BAYC as Second Largest NFT Collection
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Former CFTC Chairman Chris Giancarlo Speaks About Bitcoin and Ethereum
Former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo made a statement about Bitcoin and Ethereum.
Anticipated Development in Bitcoin Happened: Now Looking Ahead to Elon Musk’s Potential Announcement
Will Tesla CEO Elon Musk keep the Bitcoin promise he announced years ago? Here is the information according to the latest developments.
PEPE Token Investor Turns Market Dip into $11.7M Profit
AI’s energy demand leaves millions of US homes power-starved
Share link:In this post: AI data centers are using so much electricity that homes nearby are stuck with bad power that damages appliances and increases the risk of fires. Over 3.7 million Americans live near these centers and are dealing with the worst power quality issues, especially in areas like Northern Virginia. The U.S. power grid wasn’t built for this surge in demand, and electricity use is expected to jump 16% in the next five years because of AI.