The International Monetary Fund (IMF) has made a $1.4 billion loan offer to El Salvador, but the financial body is asking for a revision of the country's Bitcoin law in return.

El Salvador is in urgent need of a $1.4 billion loan from the IMF to meet its financial obligations. However, the IMF has consistently requested that the Central American nation reconsider its Bitcoin law as a condition for the loan. President Nayib Bukele, on the other hand, has not shown any signs of changing his stance on the matter.

The IMF has been vocal about the risks associated with Bitcoin, with its Communications Director, Julie Kozack, recently expressing concerns about the cryptocurrency's volatility. The IMF has made it clear that it will not consider El Salvador's loan request unless the country agrees to revise its Bitcoin law.

The IMF has been critical of El Salvador's use of Bitcoin as legal tender since at least September 2021. The financial agency believes that the use of Bitcoin poses a threat to financial stability and economic health due to its highly volatile nature. In 2022, the IMF recommended that El Salvador stop using Bitcoin as legal tender, which would require a change in the country's Bitcoin law.

Despite the IMF's pressure, El Salvador has remained committed to its Bitcoin strategy. Vice President Felix Ulloa has emphasized the government's unwavering commitment to Bitcoin, citing the recent endorsement of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) as a significant factor.

Given the importance of the $1.4 billion loan to El Salvador and its commitment to Bitcoin, it remains to be seen if the country will give in to the IMF's request. With El Salvador's Bitcoin holdings currently in profit due to the cryptocurrency's price rally this year, the likelihood of changing its laws regarding Bitcoin may be even less likely. Only time will tell if President Bukele will agree to the IMF's request.