El Salvador is going to curb its Bitcoin activities and in return will receive a $1.4 billion (about €1.33 billion) loan from the International Monetary Fund (IMF).

The country has reached an agreement with the IMF to reduce its Bitcoin activity. In return, El Salvador will receive financial support to address macroeconomic challenges. The IMF stated, "The IMF-supported program aims to strengthen fiscal and external stability and create conditions for stronger economic growth."

With the loan, El Salvador will address its reform agenda and balance of payments problems. As part of the deal, Bitcoin purchases and transactions will be restricted. In addition, the IMF states that taxes should only be paid in U.S. dollars and that the government should reduce its involvement in the Bitcoin wallet Chivo.

As a result, Bitcoin will lose its status as an official means of payment in El Salvador, as taxes and debts can no longer be paid in the cryptocurrency. Also, merchants will no longer be legally required to accept Bitcoin. At the time, the 2021 Bitcoin law required businesses to accept the digital currency as a means of payment.

However, the agreement with the IMF is not yet final. "Final approval by the IMF Executive Board depends on the implementation of the agreed measures," the IMF said.

In August 2024, President Nayib Bukele acknowledged that the Bitcoin experiment had produced mixed results. He indicated that Bitcoin had limited acceptance within the country.

El Salvador became the first country in the world to introduce Bitcoin as an official means of payment in 2021. The initiative was led by President Bukele, with the goal of promoting financial inclusion.

To date, the government of El Salvador has collected more than 5,968 Bitcoin, with an estimated value of $600 million (about €570 million).