In El Salvador, as of January 2025, Bitcoin's status as legal tender has been effectively revoked, ending the experiment that began in 2021. This decision, influenced by a $1.4 billion loan agreement with the International Monetary Fund (IMF), mandates a scaling back of Bitcoin policies. (Source: Reuters, Financial Times, Associated Press)
The Legislative Assembly amended the Bitcoin Law, removing the mandatory acceptance of Bitcoin by businesses. Bitcoin is no longer considered "currency," making its use voluntary for private sector merchants. (Source: Reuters, Financial Times, Associated Press)
Despite the change, President Nayib Bukele confirmed the government will continue purchasing Bitcoin for its reserves. The IMF's involvement highlights global concerns about Bitcoin's volatility and its impact on financial stability. (Source: Reuters, Financial Times, Associated Press)