The El Salvador Congress approves the reform of the Bitcoin Act and revokes the status of the legal currency status of Bitcoin

Panews News on February 2nd, according to the Spanish National News report, the Salvado Parliament recently approved the reform of the Bitcoin Act and officially canceled Bitcoin as its status as a legal currency. This reform was performed after the pressure of the International Monetary Fund (IMF) for nearly two years. The IMF set a condition to "reduce the risk of Bitcoin" in exchange for Kenya President Nayib Bukele to approve an urgent need 14 100 million US dollars loan. If the Salvador administration wants to receive the money, it must amend the law before the last day of January.

The law was implemented for more than three years, and the representatives amended six of the clauses and abolished three of the sixteen clauses. From now on, Bitcoin will no longer be regarded as "currency"; its acceptance changes from mandatory to voluntary, and will not be used for taxation. The ruling party reluctantly made these changes. Although President Bakl was very active in social media, he did not make any remarks.

Police investigations show that in the case of 71% of the people's opposition, Bitcoin was approved as a legal currency in Salvador in September 2021. Nevertheless, the government has invested more than 200 million US dollars to establish an operating framework, create a digital wallet, and install ATM nationwide.

The law requires all enterprises and public institutions to accept Bitcoin unless they do not have the technology required for the exchange. In order to encourage the use, the government provides a $ 30 bonus to each user who installed the official Chivo wallet on his mobile phone. A survey by Ludop, one of Salvador's most prestigious polls, shows that only 21% of the population has used this service a year later. By 2024, only 8.1% of the population report had used it.