Media reports El Salvador revoking Bitcoin legal tender

2025-02-05 02:17:04

(MENAFN) El Salvador’s congress has voted to revoke Bitcoin’s status as legal tender, reversing a groundbreaking decision made in 2021. The reform, passed on January 30 with 55 votes in favor, follows pressure from the International Monetary Fund (IMF) tied to a $1.4 billion loan agreement aimed at stabilizing the country’s economy. The IMF insisted that Bitcoin’s use should be voluntary in the private sector, prompting El Salvador to change its stance.

In 2021, El Salvador became the first country to recognize Bitcoin alongside the US dollar as legal tender. However, widespread public skepticism and minimal adoption, with surveys showing 92% of Salvadorans not using Bitcoin, led to the shift. Despite the reform, the government has indicated it will continue purchasing Bitcoin for its reserves.

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