El Salvador backs out of $1.4 billion IMF loan deal that mandated Bitcoin payments

El Salvador has signed a loan agreement with the International Monetary Fund (IMF) and will not mandate Bitcoin payments, and will scale back the government's participation in Bitcoin-related projects.
El Salvador will not require merchants to accept bitcoin payments under an agreement with the IMF, and will instead use the little-used government-backed wallet Chivo to carry out political transactions.
The Central American country of El Salvador has received $1.4 billion in aid from the IMF over the next 40 months.
The IMF said in a statement today that this is part of measures to reduce the country's debt-to-GDP ratio.
In a statement, the IMF said, "The potential risks to Bitcoin projects will be significantly mitigated by IMF policies," and "legal reform will help to encourage private sector business."
"Acceptance of Bitcoin will be autonomous," he said. "The public sector will only engage in limited Bitcoin-related economic activities, transactions, and purchases of Bitcoin."
" El Salvador has been buying Bitcoin since 2021 and currently operates a National Bitcoin Office (Bitcoin
According to documents from the Bitcoin.coin.co.jp (BTC.CO. Office), the company holds 5,968.8 BTC, which is equivalent to approximately $602 million (approximately 93 billion yen).