As reported by Financial Times, the anticipated US$1.3 billion loan package would potentially unlock additional funding from the World Bank and Inter-American Development Bank.
Under proposed terms, El Salvador would make Bitcoin acceptance voluntary for businesses, removing the current legal mandate.
President Nayib Bukele’s government would also commit to reducing budget deficits by 3.5 percentage points over three years, pass anti-corruption legislation, and increase national reserves from US$11 billion to US$15 billion.
The deal represents a significant compromise for Bukele, who has positioned Bitcoin as a transformative economic strategy. Despite the president’s enthusiasm, most Salvadoreans have continued to prefer using US dollars.
That said, Bukele has accumulated cryptocurrency reserves, claiming a 127% gain, and recently celebrated the country’s improving financial outlook. The nation’s risk rating has dramatically improved, with sovereign bonds now trading near face value.
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