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

El Salvador's efforts to secure a $1.4 billion loan from the International Monetary Fund (IMF) have hit a roadblock, with the organization demanding four major Bitcoin reforms.

The IMF has been reviewing El Salvador's economic performance and has made several demands in order for the country to unlock the full amount of the loan program. One of the key conditions is that El Salvador must halt its state-led Bitcoin accumulation strategy and only allow private donors to provide funds for the digital asset.

El Salvador had previously passed a law making Bitcoin legal tender, but it has since made several reforms as part of negotiations with the IMF. The country's BTC wallet has swelled by over 1,000, breaching the IMF's accumulation demand, and El Salvador provided proof that its latest BTC reserves came entirely from private donations.

The IMF is also demanding that El Salvador unwind its remaining control over the Chivo e-wallet, which was previously state-run. The organization wants to ensure that Bitcoin's use remains voluntary for both individuals and businesses, and that Bitcoin tax payments remain banned.