The International Monetary Fund (IMF) has reached a staff-level agreement with El Salvador for a $1.4 billion loan under the Extended Fund Facility (EFF), which could potentially increase to $3.5 billion pending IMF Executive Board approval. A key condition of this agreement is that El Salvador refrains from purchasing additional Bitcoin and limits its public sector involvement in cryptocurrency activities .
As part of the deal, El Salvador's Congress swiftly amended its Bitcoin law to make the acceptance of Bitcoin voluntary for businesses, rather than mandatory. Additionally, the government agreed to reduce its involvement in Bitcoin-related projects, including the gradual phasing out of the state-run Chivo wallet, and to ensure that taxes are paid in U.S. dollars instead of Bitcoin .
Despite these concessions, President Nayib Bukele's administration has indicated intentions to continue adding Bitcoin to the country's reserves, especially in light of recent political developments in the U.S. that may lead to more favorable cryptocurrency policies .
As of now, Bitcoin (BTC) is trading at approximately $108,777, reflecting a decrease of 0.74% from the previous close. The intraday high and low are $110,425 and $108,616, respectively.
