El Salvador cancels the status of Bitcoin as an official currency

The Salvadoran Congress, controlled by the ruling party, has quietly approved a reform to the Bitcoin law that renders the use of Bitcoin as an official currency invalid, leaving it up to users to decide.

This reform was carried out after nearly two years of pressure from the International Monetary Fund (IMF), which set a condition of "reducing Bitcoin's risk" in exchange for President Nayib Bukele approving a much-needed $1.4 billion loan. If the Salvadoran government wants to receive this money, it must amend its laws before the last day of January.

More than three years after implementing this law, representatives have amended six clauses and abolished three out of sixteen clauses. From now on, Bitcoin will no longer be considered "currency"; its acceptance has changed from mandatory to voluntary and it will not be used for tax purposes.