El Salvador Slows Down on Pro-Bitcoin Policies Amid IMF Pressure

El Salvador has marked five years since its announcement to adopt Bitcoin as a national currency. As part of recent changes, the government has scaled back some of its pro-Bitcoin policies in compliance with IMF conditions. The Central American country received a $1.4 billion bailout from the IMF, which came with expectations for El Salvador to limit its use of Bitcoin.

The country's Bitcoin fund has been reduced by 50% to avoid exposing taxpayers' money to volatility. Currently, the government holds 7,474 BTC in this fund. The requirement for merchants to accept Bitcoin as payment is now voluntary, rather than mandatory.

El Salvador's decision highlights its government's significant investment in Bitcoin, with the country holding the fifth-largest number of BTC among governments worldwide. According to CoinGecko data, 13 governments collectively hold approximately $26.8 billion worth of Bitcoin, making them major institutional holders of the asset.