El Salvador, Which Was Preparing for an Agreement with the IMF, Has Backed Down on Bitcoin (BTC)!

El Salvador, which broke new ground by accepting Bitcoin as its official currency, has taken a step back.

According to the Financial Times, El Salvador plans to agree on a $1.3 billion loan program with the IMF in the next two to three weeks, and in exchange for this agreement, take some steps back on BTC.

El Salvador expects to reach an agreement with the International Monetary Fund over the next two to three weeks on a $1.3 billion loan program in exchange for changes to its leading use of Bitcoin as legal tender and reduced government deficits, according to two people familiar with the talks.

An IMF mission has arrived in San Salvador to iron out details of the deal with President Nayib Bukeles government, according to the FT.

Under the agreement with the IMF, El Salvador will lift the requirement for businesses to accept Bitcoin as a payment method and make it voluntary.

It will be recalled that the IMF opposed El Salvadors adoption of Bitcoin due to risks to financial stability and integrity and called on the Bukele government to stop accepting BTC as legal tender.