El Salvador's official digital bitcoin wallet Chivo will be sold or discontinued, an official said on Thursday, a day after the Central American country struck an agreement with the International Monetary Fund (IMF).

The Central American nation agreed to scale back its controversial bitcoin policy to help secure a loan agreement.

El Salvador has made Bitcoin acceptance by merchants voluntary and limited public sector involvement in Bitcoin as part of a $1.4B

El Salvador will receive a $1.4 billion loan from the International Monetary Fund (IMF) over the next 40 months as it “confines” its Bitcoin-related activities.

Under the agreement, El Salvador will make Bitcoin acceptance voluntary for the private sector while restricting public sector involvement.

El Salvador has reached a deal with the IMF for a $1.4 billion loan, subjected to scaling down its Bitcoin project from here onwards.

El Salvador secures IMF deal, adjusting Bitcoin policy to voluntary acceptance, focusing on fiscal reform and economic resilience.

Crypto-friendly El Salvador could end a mandate requiring businesses to accept bitcoin as payment, sources told The Financial Times.

El Salvador may amend its Bitcoin Law under IMF pressure to secure a $1.3 billion loan and unlock $2 billion in additional international funding.

The government of El Salvador’s President Nayib Bukele agreed to scale back his ambitious plan to adopt bitcoin as a national currency in exchange for a much-needed $1.4 billion loan by the International Monetary Fund.