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

El Salvador is facing demands from the International Monetary Fund (IMF) to implement four major Bitcoin reforms in order to secure a $1.4 billion loan program.

The IMF has noted these requirements following its second and third reviews, which led to the immediate disbursement of $138 million to the country.

The demands include halting state-led Bitcoin accumulation strategies, with private donors being the sole source of new BTC. The nation is also required to unwind its remaining control over the Chivo e-wallet, a formerly state-run wallet that now operates primarily under private management.

In addition, the IMF stresses the need for voluntary use of Bitcoin by both individuals and businesses, as well as maintaining a ban on Bitcoin tax payments. The country has already removed state-guaranteed convertibility of BTC to US dollars for merchants, alleviating the burden of banks holding massive cash reserves.