El Salvador Removes Bitcoin from Official Currency

the Salvadoran parliament, controlled by the ruling party, has quietly approved reforms to the Bitcoin law, which makes the use of Bitcoin as an official currency invalid and left to the discretion of users. This reform was carried out after nearly two years of pressure from the International Monetary Fund (IMF), which set a condition to "reduce the risk of Bitcoin" in exchange for approving a much-needed $1.4 billion loan to Kenyan President Nayib Bukele. If the Salvadoran government wants to receive this money, it must modify the law before the last day of January.

The law has been in effect for more than three years, and representatives have modified six of its clauses and repealed three of the sixteen clauses. From now on, Bitcoin will no longer be considered a "currency"; its acceptance will shift from mandatory to voluntary, and it will not be used for taxation.