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El Salvador Reaches $1.4 Billion IMF Deal, Continues Bitcoin Holdings
In a significant development, El Salvador has secured a massive $1.4 billion loan agreement with the International Monetary Fund (IMF) while maintaining its stance on Bitcoin adoption. The country’s decision to continue holding Bitcoin as legal tender comes as a surprise to many, considering the IMF’s concerns about cryptocurrency risks.
Under the new deal, private businesses will no longer be required to accept Bitcoin payments, effectively making cryptocurrency transactions voluntary for the private sector. In a tweet, National Bitcoin Office head Stacy Herbert confirmed that El Salvador would not only maintain its existing Bitcoin holdings but also consider increasing them in the future as part of its strategic reserve.
As of now, the government holds 5,968 BTC (approximately $594 million), with plans to potentially accelerate the rate at which it acquires more. The IMF agreement marks a significant milestone in El Salvador’s cryptocurrency journey, striking a balance between international financial cooperation and its digital asset strategy.
Despite some changes to the original Bitcoin law, the core elements of the country’s cryptocurrency adoption remain intact. It is now clear that Bitcoin will continue as legal tender alongside the US dollar.
Source: blockonomi.com
