El Salvador Nears $1.3 Billion IMF Loan Agreement

El Salvador is on the verge of securing a $1.3 billion loan agreement with the International Monetary Fund (IMF). This development comes despite the IMF's previous criticism of the country's adoption of cryptocurrencies. An announcement is expected within the next two to three weeks, according to sources cited by the Financial Times on Monday.

The loan agreement is contingent upon changes to Bitcoin's status as legal tender and fiscal adjustments. If successful, this deal could unlock an additional $1 billion each from the World Bank and the Inter-American Development Bank. Talks are currently ongoing in San Salvador with President Nayib Bukele's government.

As Bitcoin reached the milestone of $100,000, President Bukele claimed it boosted sovereign bonds in traditional markets. However, the US Federal Reserve expressed skepticism about cryptocurrencies' significant impact on the economy, highlighting concerns over their speculative nature.