El Salvador, which made a world first by accepting Bitcoin as legal currency, has now taken a step back.
The Congress of El Salvador approved the Bitcoin reform bill presented by President Nayib Bukele on January 29 to comply with the requirements of the $1.4 billion loan agreement reached with the International Monetary Fund (IMF).
As part of the agreement, the IMF asked the government of El Salvador to reduce its involvement in Bitcoin and make Bitcoin optional and voluntary for private sector traders.
With this approved Bitcoin reform bill, BTC ($105,183.78) has been made optional and voluntary for private sector traders. Previously, it was a legal requirement for businesses to accept Bitcoin as payment.
The reform bill was passed with 55 votes in favor and only two against.
Ruling party lawmaker Elisa Rosales said the change was necessary to ensure Bitcoin’s permanence as legal tender and facilitate its practical application.
Despite the policy change, the El Salvadoran government led by Nayib Bukele has recently announced that it will continue to increase its Bitcoin (BTC) holdings in an effort to enrich national reserves.
According to Bitcoin Office data, El Salvador currently holds 6,049 BTC worth approximately $636.6 million.
*This is not investment advice.
Continue Reading: IMF Requested, El Salvador Took the First Step Back on Bitcoin! Is BTC’s Official Currency Status Changing?
