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El Salvador Adjusts Bitcoin Policy Amid IMF Loan Conditions

El Salvador is modifying its Bitcoin policy to secure a $1.4 billion loan from the International Monetary Fund (IMF), which includes lifting mandatory Bitcoin acceptance. Despite being the first country to adopt Bitcoin as legal tender, its use remains limited, with the US dollar dominating transactions. The IMF cites Bitcoin’s volatility as a concern, leading to conditions including tax payments in US dollars and less governmental involvement in Bitcoin projects. While locals rarely use Bitcoin, the country has seen significant tourism growth linked to Bitcoin investments.

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