IMF Demands Bitcoin Reforms for El Salvador to Unlock $1.4B Loan

El Salvador is facing pressure from the International Monetary Fund (IMF) to reform its Bitcoin policy in order to secure a $1.4 billion loan. The IMF has tied the loan to several conditions, including halting state-led Bitcoin accumulation and unwinding control of the Chivo e-wallet.

The IMF has also demanded that El Salvador rely only on private donations for Bitcoin acquisitions, stop state-led Bitcoin purchases, and implement public audits, AML rules for digital service providers, and voluntary-use rules that limit state-driven crypto demand.

El Salvador currently holds 7,789 BTC, valued at over $660 million at a price of $84,761 per BTC. The country has made significant economic progress since adopting Bitcoin as legal tender in 2021, but the IMF is concerned about the potential risks associated with its Bitcoin policy.