El Salvador’s Legal Currency Status Changes- BTC Dropped from the Position 

President Nayib Bukele was a pro-crypto leader. However, smaller countries need to keep parity with the US in terms of trade and international relations. Therefore, the IMF’s soft signal had a special importance in this case.  

However, the withdrawal of Bitcoin as one of the official currencies of a country raises many questions. Especially Bitcoin ETF tenders would be in question.  

Not a currency alternative for tax payment  

El Salvador under Bukele changed the laws governing the country to announce BTC was legitimate as per the constitution. After the compelled change in the role of Bitcoin in the country, article 4 of the constitution does not exist anymore.  

Bitcoin itself does not contain international legal tender status. The International Monetary Fund argues that in such a situation the token can’t be used as a legal tender for payments and exchange in a country.  

BTC is not compulsory for merchant payments anymore  

In El Salvador, Bitcoin legal tender was a common thing until the recent past. Meanwhile, some critics suggest that the rule was not imposed.  

BTC is not currency anymore  

A big revelation came on 29th January 2025. BTC is now no longer classified as an official currency in El Salvador. A new article called the article on is in place now. It suggests that a currency with a legal tender status is the most important. Now the government is also slowly moving away from the excessive use of BTC. Some of the government bodies will stop taking payments in BTC. 

Similar to Donald Trump, the El Salvador pro-crypto government took many steps to generalize the use of Bitcoin all big and small agents were asked to take payment in Bitcoin. It’s difficult to guess how their currency will fare after BTC transactions become ineffective.  

The post El Salvador’s Legal Currency Status Changes- BTC Dropped from the Position  appeared first on Coinfomania.