The post El Salvador Ends Bitcoin’s Legal Tender Status Amid IMF Pressure appeared on BitcoinEthereumNews.com.

El Salvador ended Bitcoin’s legal tender status, making its use voluntary and limiting its role in government transactions. Bitfinex Securities’ BMN2 investment lowers entry barriers, allowing more investors to participate in Bitcoin mining under El Salvador’s new regulations. El Salvador has ended Bitcoin’s status as legal tender. The choice followed pressure from the International Monetary Fund (IMF) trying to land a $1.4 billion loan. The new regulations make Bitcoin use entirely voluntary, therefore merchants and institutions are free to reject it and the coin cannot be used for tax payments. Actually, President Nayib Bukele has been advocating the adoption of Bitcoin as a national economic fix starting in 2021. Nonetheless, according to a recent poll, just 8.1% of the population still utilizes the Chivo Wallet digital wallet, and most respondents believe the program has not really benefited them. Does this mark the end of the national Bitcoin experiment? Bukele Stepping Down or Just Maneuvering? Many wonder if Bukele has truly abandoned his vision of making El Salvador a global Bitcoin hub. Even without legal tender status, the government still plans to hold Bitcoin in its strategic reserves, showing they’re not walking away from it entirely. On the other hand, this choice is definitely inseparable with IMF pressure. El Salvador’s Bitcoin approach has long been seen by the international banking institution as overly large a financial risk. The government has finally decided to restrict the nation’s exposure to Bitcoin if it is to qualify for billions of loans. Impact on Local Communities and Businesses From its implementation, Bitcoin adoption in El Salvador has proved difficult. Technical obstacles have dogged the crypto-based payment system, so most companies have chosen US dollars over Bitcoin. Some small business have even claimed they are having trouble accepting Bitcoin payments since dramatic price swings are causing…

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Filed under: News - @ February 2, 2025 11:23 am