El Salvador ends mandatory Bitcoin acceptance for merchants

The El Salvador Legislative Assembly has changed its Bitcoin law, which makes the merchants optional to accept Bitcoin as payment.

This change aligns with the conditions set by the International Monetary Fund For a loan of $ 1.4 billion aimed at strengthening the national economy.

El Salvador entered history in September 2021 by Become the first country Adopt Bitcoin (BTC) As a legal offer alongside the US dollar. The initiative, defended by the president Nayib Bukelehas sought to improve financial inclusion and stimulate economic growth.

However, the requirement for all companies to accept Bitcoin has faced criticism due to the volatility of cryptocurrency prices and the limited understanding of the population of digital currencies.

More compulsory bitcoin acceptance

The recent legislative reform responds to these concerns by allowing companies to choose to accept Bitcoin, according to in Yahoo.

In addition, the government will no longer accept Bitcoin for tax payments and plans to reduce its involvement in Bitcoin -related activities, including reducing use of the chivo portfolio application sponsored by the state.

These adjustments were essential in obtaining the IMF loan, which aims to stabilize El Salvador economy. The IMF had previously expressed an apprehension concerning the adoption of El Salvador Bitcoin, invoking risks for financial stability and consumer protection.

By making the acceptance of Bitcoin voluntary and limiting the government’s participation, El Salvador seeks to respond to these concerns while retaining the legal status of Bitcoin.