INSUBCONTINENT EXCLUSIVE:
El Salvador has revised its Bitcoin law to make its acceptance by businesses voluntary, following pressure from the International Monetary
a $1.4 billion loan from the IMF
aimed to enhance financial inclusion and attract foreign investment but has faced significant challenges
tender.Despite these hurdles, El Salvador has continued to invest in Bitcoin, recently adding to its reserves to bolster its Strategic
The amendment removes the obligation for businesses to accept Bitcoin, making its use optional.El Salvador Amends Bitcoin Law to Make
Payments Optional After Four Years
(Photo Internet reproduction)Bitcoin remains legal tender, meaning it can be used to settle debts
the IMF also stipulates that US dollars must be used exclusively for tax payments
This further reduces the mandatory role of Bitcoin.Surveys indicated that by 2024, approximately 8% of Salvadorans used Bitcoin, while
around 76% did not engage with it for transactions, highlighting low adoption rates.The initiative faced technical issues with the Chivo
wallet, which was intended to facilitate Bitcoin use
has attracted global attention, initially increasing tourism and interest in the country
However, the economic impact has remained limited, serving as a cautionary tale for other nations considering similar cryptocurrency
integrations.The government has committed to reducing its role in the Chivo Wallet as part of the IMF deal, reflecting a cautious approach
to cryptocurrency in national economies.This policy adjustment reflects broader trends in cryptocurrency adoption
It highlights where enthusiasm meets the realities of economic stability, regulatory compliance, and international financial standards.It
might signal a more measured approach by El Salvador in future financial innovations
This could potentially influence its dialogue with international financial institutions on broader economic reforms.
