El Salvador Considers Scaling Back Bitcoin Mandate in IMF Loan Talks

The country may make Bitcoin acceptance voluntary as part of negotiations for a $1.3 billion IMF loan to stabilize its economy.

El Salvador is in advanced talks with the IMF to secure a $1.3 billion loan, with an agreement expected within weeks.
The government is reportedly prepared to revise its Bitcoin law, removing the mandate for businesses to accept Bitcoin as payment and making it voluntary instead.
The IMF has consistently raised concerns about financial and fiscal risks associated with El Salvador's adoption of Bitcoin as legal tender in 2021.
Additional conditions for the loan include reducing the budget deficit by 3.5% of GDP over three years, increasing reserves, and passing anti-corruption legislation.
Despite President Bukele's efforts to promote Bitcoin, adoption among Salvadorans remains low, with 88% reportedly not using the cryptocurrency in 2023.