IMF Demands Bitcoin Reforms from El Salvador for $1.4 Billion Loan

El Salvador's bid to secure a $1.4 billion loan program with the International Monetary Fund (IMF) has hit a snag. The organization has demanded four major Bitcoin reforms for the country to unlock the funds. According to the IMF, El Salvador must halt its state-led Bitcoin accumulation strategy and rely solely on private donations to build its reserves.

The country must also unwind its control over the Chivo e-wallet, which is currently run by a private operator. Furthermore, the IMF is calling for voluntary use of Bitcoin for both individuals and businesses, as well as the continued ban on Bitcoin tax payments. Finally, the country must undergo a public audit and full disclosure of its digital assets to mitigate fiscal risks.

El Salvador's national treasury currently holds 7,789 BTC, valued at over $660 million, with net unrealized gains of around $226 million. The IMF's demands follow the completion of its second and third reviews, which led to the immediate disbursement of $138 million to the country.