IMF Reassured on Bitcoin, Unlocks $1.4B Loan for El Salvador

The IMF has reached an agreement to disburse $1.4 billion in loans to El Salvador over 40 months, following commitments that bitcoin will lose its legal tender status by January 2025. This marks a reversal of the IMF's earlier stance, as it had previously demanded the removal of bitcoin's legal tender status as a condition. The development reduces sovereign default risk and signals a de-escalation of the crypto policy conflict.