El Salvador Scales Back Bitcoin as Legal Tender After IMF Pressure
🔑 Key Takeaways El Salvador will reduce its use of Bitcoin as legal tender following agreements with the IMF. Tax payments in BTC suspended and state-run Chivo wallet adjusted. 🗞 Main Story El Salvador became the first country to adopt Bitcoin as legal tender in 2021. However, by 2024 and 2025, the government scaled back its official use after pressure from the IMF. Tax payments in BTC were suspended, the obligation for merchants to accept Bitcoin was removed, and the state-managed Chivo wallet was adjusted. The move reflects the retreat of a pioneering policy that once made global headlines but also generated losses and diplomatic tensions. Now, El Salvador is seeking to restore international confidence and secure external financing, reigniting the global debate about Bitcoin’s role as a national currency. 🔬 Expert Opinions Daniel Salazar (Economist, World Bank): “El Salvador’s reversal shows the limits of impulsive crypto policies without solid fi...