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El Salvador Becomes the World's First Country to Adopt Bitcoin as Legal Tender

2025.02.02 10:40:29

February 2nd: El Salvador, which was formerly the first country to adopt Bitcoin as legal tender in the world, has now become the first country to reverse this policy. The Salvadoran Congress (controlled by the ruling party) quietly passed an amendment to the "Bitcoin Law," taking away Bitcoin's official currency status and making its use completely optional based on individual preferences. This reform was carried out under the pressure from the International Monetary Fund (IMF) over the past two years. The IMF's approval of a $1.4 billion loan was conditional on the Salvadoran government "reducing the risks of Bitcoin." President Nayib Bukele urgently needed this funding, so the government had to amend the law by the end of January to obtain the loan. Bitcoin is no longer a "currency," and its use is now completely voluntary. Members of Congress amended six clauses of the "Bitcoin Law" and abolished three clauses (the law had a total of 16 clauses since its implementation). From now on: · Bitcoin is no longer regarded as a "currency," and businesses are no longer obligated to accept Bitcoin payments. · Its use is at one's own will and no longer has legal tender status. · The government will no longer accept Bitcoin for taxes. Although the ruling party reluctantly accepted this amendment, they did not widely publicize it. Despite President Bukele being very active on social media, he has not yet commented on this matter.
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