El Salvador gets IMF $1.4bn deal after scaling back bitcoin bet

El Salvador has successfully clinched a loan agreement with the International Monetary Fund (IMF) worth $1.4 billion, following a decision to scale back its pioneering, yet divisive, bitcoin policy. The Central American country made headlines in June 2021 when it became the first nation worldwide to adopt bitcoin as legal tender, a move championed by President Nayib Bukele. This bold step was intended to revolutionize its economy by circumventing high banking fees, improving financial accessibility for its citizens, and attracting a new wave of tech-focused investment. However, the decision was met with skepticism from international financial bodies, including the IMF, which raised concerns about the potential implications for financial stability, transparency, and consumer protection. The volatility of bitcoin, exemplified by sharp price swings, and the environmental impact of bitcoin mining, were among the primary apprehensions. Critics within the country also pointed to the lack of a comprehensive public understanding and acceptance of cryptocurrency, compounded by technological hurdles that hindered its widespread adoption. Facing an already challenging economic scenario exacerbated by the COVID-19 pandemic, and urged by the need for financial support, El Salvador has engaged with the IMF to secure a critical funding lifeline. This engagement has led to significant policy adjustments, notably a decision to temper its bitcoin venture. While not abandoning its digital currency ambitions entirely, El Salvador's government has indicated a readiness to address the IMF's concerns, aiming to strike a balance between innovative financial inclusion strategies and conventional economic stability measures. This move