El Salvador to Restrict Bitcoin Use in Exchange for IMF Loan: El Salvador has struck a deal with the International Monetary Fund, securing an initial loan of $1.4 billion. As part of the agreement, the country will repeal the mandate requiring businesses to accept Bitcoin as payment.

December 19, 2024

Since 2021, Bitcoin has been recognized as legal tender in El Salvador alongside the US dollar. Additionally, the government has been purchasing one Bitcoin daily, accumulating 5,968 BTC (~$609 million) in its official state wallet.

According to the IMF, Bitcoin-related activities in the public sector, including purchases and transactions, will be restricted. However, specific details of these restrictions remain unclear, and the government continues its daily Bitcoin purchases.

The IMF will also require El Salvadoran citizens to pay taxes exclusively in US dollars and will gradually phase out the government’s involvement with Chivo, the state-run Bitcoin wallet.

“Transparency, regulation, and oversight of digital assets will be strengthened to ensure financial stability, consumer and investor protection, and financial integrity,” the IMF stated.

Other objectives of the IMF agreement include tax reforms aimed at reducing national debt and enhancing budget transparency and efficiency.

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El Salvador to Restrict Bitcoin Use in Exchange for IMF Loan: El Salvador has struck a deal with the International Monetary Fund, securing an initial loan of $1.4 billion. As part of the agreement, the country will repeal the mandate requiring businesses to accept Bitcoin as payment.

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In 2024, Germany imported ~24 TWh more electricity than it exported, marking the first net import since 2002 (except for 2023). With nuclear plants shut down, most imports now come from France.

Michael Saylor is freaking out right now because when Bitcoin drops, non-recourse lenders are entitled to the collateral (Bitcoin). In this case, unless Saylor was able to massively dilute his shares to raise capital the lenders would simply take all of MSTR’s Bitcoin.