El Salvador ends Bitcoin as legal tender, according to reports
The reform is said to have been implemented to meet the requirements established by the IMF for a $1.4 billion loan. Read Full Article at RT.com
TroibNews 
El Salvador’s Congress has voted to revoke Bitcoin’s status as legal tender, marking a significant shift from the country’s groundbreaking decision in 2021, as reported by various media outlets. This reform, which alters the Bitcoin law, follows a loan agreement with the International Monetary Fund (IMF) that stipulates the cryptocurrency's acceptance in the country must be voluntary.
In 2021, El Salvador made history by becoming the first nation to officially recognize cryptocurrency as legal tender, alongside the US dollar, which had served as the primary currency for two decades.
The legislative changes, enacted on January 30, have eliminated the requirement for mandatory Bitcoin acceptance in El Salvador, thereby making its use entirely voluntary. The reform received approval with 55 votes in favor and two against.
These amendments are said to be the result of nearly two years of pressure from the IMF, which has sought to reduce Bitcoin-related financial risks in exchange for a $1.4 billion loan agreed upon in December to help stabilize the nation's ailing economy.
The IMF specifically emphasized the necessity for Bitcoin acceptance to be voluntary within the private sector, according to Reuters.
This policy alteration represents a notable turnaround for El Salvador, as President Nayib Bukele previously advocated for Bitcoin's legal tender status to enhance financial inclusion, especially for the unbanked population.
However, recent surveys reveal that 92% of Salvadorans have not utilized Bitcoin since its official adoption, reflecting significant public skepticism about the digital currency, despite government initiatives to promote it.
Even with Bitcoin's removal as legal tender, the government has indicated it will persist in purchasing the cryptocurrency to bolster its reserves.
Last year, Bukele criticized the US dollar, asserting that it is not backed by anything and that the US economy relies on the “farce” of printing limitless amounts of money. He anticipated that Western civilization would collapse when this bubble “inevitably bursts.”
Mark B Thomas contributed to this report for TROIB News
In 2021, El Salvador made history by becoming the first nation to officially recognize cryptocurrency as legal tender, alongside the US dollar, which had served as the primary currency for two decades.
The legislative changes, enacted on January 30, have eliminated the requirement for mandatory Bitcoin acceptance in El Salvador, thereby making its use entirely voluntary. The reform received approval with 55 votes in favor and two against.
These amendments are said to be the result of nearly two years of pressure from the IMF, which has sought to reduce Bitcoin-related financial risks in exchange for a $1.4 billion loan agreed upon in December to help stabilize the nation's ailing economy.
The IMF specifically emphasized the necessity for Bitcoin acceptance to be voluntary within the private sector, according to Reuters.
This policy alteration represents a notable turnaround for El Salvador, as President Nayib Bukele previously advocated for Bitcoin's legal tender status to enhance financial inclusion, especially for the unbanked population.
However, recent surveys reveal that 92% of Salvadorans have not utilized Bitcoin since its official adoption, reflecting significant public skepticism about the digital currency, despite government initiatives to promote it.
Even with Bitcoin's removal as legal tender, the government has indicated it will persist in purchasing the cryptocurrency to bolster its reserves.
Last year, Bukele criticized the US dollar, asserting that it is not backed by anything and that the US economy relies on the “farce” of printing limitless amounts of money. He anticipated that Western civilization would collapse when this bubble “inevitably bursts.”
Mark B Thomas contributed to this report for TROIB News
