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

BlockBeats News, February 2nd: El Salvador, once the world's first country to adopt Bitcoin as legal tender, 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," stripping Bitcoin of its official currency status and making its use entirely optional based on individual choice.

This reform was made under 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 "mitigating the risks of Bitcoin." President Nayib Bukele urgently needed this funding, requiring the government to amend the law by the end of January to secure the loan.

Bitcoin is no longer a "currency," and its use is now entirely voluntary. Members of Congress amended six clauses of the "Bitcoin Law" and repealed three clauses (the law had a total of 16 clauses since its implementation). From now on:

· Bitcoin is no longer considered a "currency," and businesses are no longer required to accept Bitcoin payments.

· Its use is voluntary and no longer holds legal tender status.

· The government will no longer accept Bitcoin for taxes.

While the ruling party reluctantly accepted this amendment, they did not publicize it widely. Despite President Bukele being very active on social media, he has yet to comment on this matter.