El Salvador Reforms Bitcoin Law, Scaling Back State Involvement | Airdrop Alert Pro

El Salvador’s legislative parliament approved the reform of the country’s Bitcoin law and changed its key aspects.

Although this development effectively weakened its formal classification as a legal tendering, Bitcoin is still a recognized asset of Salvador.

The key correction of the El Salvado Bitcoin Law

The legislators were in favor of 55 votes and canceled the requirements of the economic agent receiving Bitcoin (BTC). They also canceled the state’s role in providing infrastructure in the state, and deleted the right Bitcoin as a legal biddingEssence

Salvador’s Legislative Council, “55 votes in favor, we reform the Bitcoin Law to improve its applicability.” AnnounceEssence

These reforms have significantly eliminated compulsory Bitcoin acceptance and allowed them to use it voluntarily to participants in the private sector. This marks a major different from the original law. The law requires enterprises to accept Bitcoin as a payment method. In addition, the state will no longer promote Bitcoin transactions through mechanisms such as Chivo Wallet.

“… Only when natural or legal people have sufficient private participation, can Bitcoin accept Bitcoin as a payment method,” report explainQuote Article 7.

It needs to abolish Article 4, 8 and 9, which allows Bitcoin to pay taxes. These clauses also require the government to provide infrastructure for the convertibility of Bitcoin to the US dollar.

These changes are in line with agreements with the International Monetary Fund (IMF) $ 1.4 billion loan The purpose is to enhance the financial sustainability. Government debt obligations must now be resolved with the currency of the original currency, which further reduces the role of Bitcoin in national financial affairs.

IMF protocol and economic consideration

really, IMF and Salvador’s loan protocol It plays a vital role in shaping these reforms. In December 2023, the Salvador government promised to reduce the mandatory use of Bitcoin and reduce its participation in infrastructure related to Bitcoin.

These legislative changes reflect the broader emotions of the Salvado population. Local media reported a recent survey that showed that in 2024, 92 % of citizens did not use Bitcoin in transactions.

“El Salvador’s various studies by the famous public opinion investigators showed that 92 % of the population did not use Bitcoin in 2024, which was the lowest year since 2021.” explainEssence

Despite these regulatory changes, Salvador continues to interact with Bitcoin in many aspects. This country Expand the Bitcoin reserve One week before the reform, it showed its long -term commitment to digital assets. In addition, Salvador has Follow the acquisition of discount Bitcoin In the US government’s $ 6.7 billion BTC sales.

Bitcoin also brings economic benefits to Salvador. Three months ago, the government used the price of Bitcoin to rise Repurchase national debtStrengthen its financial situation.

“We promised to eliminate political debt. People complained to us that we have not fulfilled our promise. We spent a while, but we listened to people. We are sending it today. Use the people’s money to provide funds for political parties explain In X post.

These actions emphasize the government’s strategic methods to use Bitcoin while adapting to international financial pressure. At the same time, El Salvador continued to attract major cryptocurrency companies. Stablecoin Issuer The line has recently moved to the country After obtaining a major permission.

“Today’s meeting will change the occurrence of history. The great thought around Salvado’s table” is the CEO Paolo Ardoino, CEO shared On X.

In addition, video platform rumble It is reported that it is considering transferring its business to Salvador. These focus is to consolidate the country’s attraction as the jurisdiction of encrypted friendship.

Although the state’s role in Bitcoin has decreased, the participation of the private sector is still active. Similarly, the country’s strategic Bitcoin acquisition continues. With the progress of the IMF agreement and the establishment of an encrypted company in El Salvador, the country’s Bitcoin experiments are still the focus of the global financial and cryptocurrency market.