Categories: MarketsMenafn

El Salvador Could Scale Back Bitcoin Plans due to $1.3B Debt with the IMF

The government of El Salvador might be obligated to modify its Bitcoin laws within the country in a new deal with the International Monetary Fund (IMF).

This means the country would have to drop its legal requirement for businesses to accept BTC as payment and instead make it a voluntary payment method.

Why? Because El Salvador has a $1.3 billion debt with the IMF.

Related: El Salvador’s 1-Bitcoin-a-Day Strategy Hits 5,948 BTC Milestone

El Salvador Would Roll Back on Its Bitcoin Plans

El Salvador adopted Bitcoin as legal tender in September 2021, actively acquired Bitcoin since then, and started with just 200 BTC that year. It didn’t stop there. The government continued its strategy, committing to daily Bitcoin purchases. 

By November 2024, the country had accumulated 5,942 BTC. However, the IMF has always expressed concerns about the potential financial risks, warning president Nayib Bukele and government officials of challenges for consumers navigating between Bitcoin and fiat currency in everyday transactions, as it would bring inefficiencies and resource costs.

In February 2023, the IMF urged the country to address risks associated with Bitcoin, arguing that its benefits had not materialized (Bitcoin was trading at approximately $21,600 then).

Related: Risk Pays Off: El Salvador Sees $263M Bitcoin Profit, Russell Okung’s BTC Worth $20M

Discussions around the $1.3 billion loan and potential revisions to the Bitcoin Law have been underway since at least October 2024. This could mean the country might have to scale back on its BTC purchases and strategic plans for the foreseeable future.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

SUI Jumps 26% in 24 Hours Amid Wider Crypto Market Rally

SUI has spiked 26% in the last 24 hours and is now near the $3…

3 hours ago

Lumoz RaaS to Support RISC-V zkEVM: Advancing Layer2 Performance and Scalability

Lumoz RaaS introduces support for RISC-V–based zkEVM, offering prebuilt development modules and a compatible toolchain…

11 hours ago

Smartproxy Rebrands to Decodo: A New Era of Web Data Solutions

Vilnius, Lithuania, 22nd April 2025, ZEX PR WIRE, Smartproxy, a leading provider of proxy and web…

21 hours ago

Bitcoin Price Breaks Above $90K: What’s Driving BTC’s Rally?

Bitcoin is back in the driver’s seat. The benchmark crypto broke through the $90,000 barrier…

1 day ago

Deutsche Bank and Standard Chartered Gear Up for U.S. Crypto Integration

Two of the world’s leading financial institutions, Deutsche Bank and Standard Chartered, are preparing to…

2 days ago

In collaboration with the UAE Cyber Security Council and GISEC 2025, emt to present Cyber Escape Room Experience

Dubai, UAE, 21st April 2025, ZEX PR WIRE, emt, a leading innovator in cybersecurity solutions…

3 days ago