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The Daily Hodl 2025-02-03 17:55:19

El Salvador Reverses Bitcoin Legal Tender Status Under Pressure From IMF: Report

El Salvador Reverses Bitcoin Legal Tender Status Under Pressure From IMF: Report

El Salvador has reportedly removed the legal tender status of Bitcoin ( BTC ) after less than four years because of pressure from the International Monetary Fund (IMF). According to a new report from BBC, the reform to El Salvador’s Bitcoin Law that the country’s lawmakers approved last week modified six and removed three of the provisions from the 2021 legislation that made it the first country in the world to adopt a cryptocurrency as legal tender. The report says the amendments make the acceptance of Bitcoin voluntary and abandon the official currency status of the asset. E conomist Julia Evelin Martínez tells BBC the implications of removing the term “currency” and leaving “legal tender” in the first article of the law, which reportedly caused confusion. “The key is that the concept of currency disappears. For example: the euro is legal tender in the country because people can use it optionally if both parties agree, but it is not legal tender because no one is obliged to accept payments in euros.” The legislative assembly passed the reforms while the government aims to secure a $1.4 billion funding deal from the International Monetary Fund (IMF) that is conditional on El Salvador reducing its Bitcoin-related risks. Last year, IMF spokesperson Julie Kozack said that the global lender urged El Salvador to reconsider its policies on Bitcoin as part of a discussion to support the country’s economic reforms. “What we have recommended is a narrowing of the scope of the Bitcoin Law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting the public sector exposure to Bitcoin.” Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post El Salvador Reverses Bitcoin Legal Tender Status Under Pressure From IMF: Report appeared first on The Daily Hodl .

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