Catenaa, Tuesday, December 10, 2024-El Salvador is reportedly set to amend its controversial Bitcoin law to secure a multi-billion-dollar deal with the International Monetary Fund (IMF), according to a report from the Financial Times.1
The agreement, expected in the coming weeks, would provide $2 billion in funding from the IMF, World Bank, and Inter-American Development Bank to bolster the nation’s economic reforms and growth.
Under the proposed terms, businesses will no longer be mandated to accept Bitcoin as payment, making adoption voluntary. This marks a significant shift from the 2021 law that made Bitcoin legal tender alongside the US dollar.
The legislation, championed by President Nayib Bukele, required businesses with the necessary technology to accept Bitcoin—a move that drew sharp criticism from the IMF and others, citing macroeconomic and financial concerns.
Talks between the IMF and El Salvador have been ongoing for years, with the cryptocurrency mandate being a major sticking point. The IMF confirmed ongoing discussions with Salvadoran officials about a new program but did not comment on specifics.
President Bukele, who initially touted Bitcoin as a transformative economic tool, acknowledged earlier this year that adoption had been lower than expected. While Bukele remains widely popular domestically, public sentiment toward Bitcoin has been lukewarm, with polls reflecting skepticism about its utility.