El Salvador has reversed its statute requiring enterprises to take Bitcoin.
El Salvador’s Congress has revised its Bitcoin Law in an effort to placate the International Monetary Fund (IMF) and obtain a $1.4 billion loan, giving businesses the option of accepting Bitcoin as payment.
El Salvador became the first country to recognize Bitcoin as legal cash alongside the US dollar in September 2021, a move championed by President Nayib Bukele to encourage financial inclusion and boost economic expansion.
However, the required acceptance of Bitcoin by all firms was criticized because of Bitcoin’s price swings and a widespread lack of public knowledge of digital currencies.
According to Yahoo News, the recent legislative changes address these issues by allowing businesses to determine for themselves whether to accept Bitcoin.
Additionally, the government will no longer take Bitcoin for tax payments and intends to reduce its participation in Bitcoin-related activities, including the state-sponsored Chivo Wallet app.
These modifications are critical for obtaining the IMF loan, which is intended to stabilize El Salvador’s economy. The IMF had previously expressed worry about the hazards Bitcoin posed to financial stability and consumer protection.
El Salvador is attempting to address these concerns while maintaining Bitcoin’s legal status by making Bitcoin acceptance voluntary and limiting government involvement. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
