Bitcoin ceased to be the legal tender in El Salvador

[BADERO]

After just over three years, El Salvador withdrew from Bitcoin the status of legal tender currency in the country president Nayib Bukele pushed the measure and became effective after the Salvadoran Legislative Assembly approved the changes the change takes place in the middle of a complex economic context for the country that is in negotiation with the International Monetary Fund for a loan of US$1.4 billion with a confusing wording
And the question now is: will this impact the value of Bitcoin both instantly and in the long term?

[_act_]

In El Salvador, if you want to make something a legal tender, all merchants must accept it as a means of payment. But this was rescinded for bitcoin because of the loan El Salvador wanted from IMF. I saw it absurd but I think El Salvador got no option as they need the loan would be what that caused them to do it.

But it is also important to know that bitcoin is still a means of payment in El Salvador which can still be kind of regarded as legal tender. Just that merchants may decide not to accept it anymore.

IMF are stupid and they have their own selfish reasons. Because in El Salvador, merchants must accept bitcoin if anyone wants to pay them in bitcoin, but the system is in a way that they can immediately choose USD in a way that the bitcoin can immediately be converted to USD and this will be done in just few seconds. In short , it is indirectly before in El Salvador that the payer can pay in bitcoin but the merchant accept USD. What is IMF problem?

And the question now is: will this impact the value of Bitcoin both instantly and in the long term?

It has no negative effect on bitcoin.

El Salvador is not even a country like United States which such news might cause decrease in bitcoin price but which also will later be followed by bull run.

[suzanne5223]

After just over three years, El Salvador withdrew from Bitcoin the status of legal tender currency in the country president Nayib Bukele pushed the measure and became effective after the Salvadoran Legislative Assembly approved the changes the change takes place in the middle of a complex economic context for the country that is in negotiation with the International Monetary Fund for a loan of US$1.4 billion with a confusing wording
And the question now is: will this impact the value of Bitcoin both instantly and in the long term?

It will somehow impact the value of Bitcoin but not for long because the people who pull this trick when to increase their bag after causing panic in the market.
El-Salvador withdrawing Bitcoin from their legal tender is normal. After all, they are facing different challenges and deny the benefits they ought to get because they make Bitcoin legal tender.

In El Salvador, if you want to make something a legal tender, all merchants must accept it as a means of payment. But this was rescinded for bitcoin because of the loan El Salvador wanted from IMF. I saw it absurd but I think El Salvador got no option as they need the loan would be what that caused them to do it.

But it is also important to know that bitcoin is still a means of payment in El Salvador which can still be kind of regarded as legal tender. Just that merchants may decide not to accept it anymore.

IMF are stupid and they have their own selfish reasons.

They are not stupid. They are following their master's (which is BlackRock and other investment giants) directive. It is us (Bitcoiners) who need to be smart and never let them play us.
I don't know if you're aware that they are also behind the issue Binance us had years ago. How they spread fud through one of the US TV programs called  "The Daily Show", and after they filed for BTC ETF which was when the BlackRock CEO started saying positive about Bitcoin.

I believe they are also pulling the same strategy and doing everything possible to cause FUD in the market for their selfish gain.
I hope just every Bitcoiner will start prioritizing the use of a self-custodial wallet from now on because they will play a lot of tricks in the market just for them to dominate and be the king.

These and more are the reasons why IMF loans always come with selfish conditions.

[Frankolala]

IMF told EL Salvador to limit their dealings with bitcoin for them to have full access to the loan, and I believe that was what El Salvador did just to please IMF by not using bitcoin as a legal tender anymore. However, that doesn't mean that the vision of Bukele with Bitcoin and El Salvador is dead, because Bukele is working tirelessly to make sure that students and household in El Salvador learns bitcoin by giving every house hold bitcoin node and students are also trained on bitcoin blockchain. El Salvador continues to stack more bitcoin.

[Jating]

IMF told EL Salvador to limit their dealings with bitcoin for them to have full access to the loan, and I believe that was what El Salvador did just to please IMF by not using bitcoin as a legal tender anymore. However, that doesn't mean that the vision of Bukele with Bitcoin and El Salvador is dead, because Bukele is working tirelessly to make sure that students and household in El Salvador learns bitcoin by giving every house hold bitcoin node and students are also trained on bitcoin blockchain. El Salvador continues to stack more bitcoin.

It's obvious that there are pressures from the IMF itself, however, what's ironic is that they still uses Bitcoin as currency still because the loan is  $1.4 billion in a credit facility. But I think it doesn't mean though that El Salvador is not going to used Bitcoin or El Salvadorian cannot invest on Bitcoin itself.

Although it has been reported that their official Bitcoin Wallet apps, Chivo will be sold or closed.

As for the effect on the Bitcoin prices, if it has negative connotations then it might bring the price down. However, I do not think that it will have a long term effect though. Sooner or later investors are still going to pour their money no matter what the news are.

[Jawhead999]

Source? otherwise you're just spreading FUDs.

From the article I get, El Salvador not withdrew the Bitcoin status from legal tender, they're still accept Bitcoin as legal tender, but they just didn't force merchants or El Salvadorian to use Bitcoin as legal tender.

According to the article I read, almost all people didn't use Bitcoin, so the impact is almost zero.

About 92 percent of Salvadorans did not use bitcoin in 2024, according to a survey by the Central American University.

[NotATether]

Source? otherwise you're just spreading FUDs.

It's true unfortunately: https://news.bitcoin.com/el-salvador-complies-with-imf-requirements-bitcoin-legal-tender-status-withdrawn/

The IMF man, they are such predators. They hold a lot of developing countries by the balls, and then they expect people to study in class why we have developed countries and developing countries and - get this - brainstorm what we can do about it.

Th answer: Nothing. Because these institutions will keep shaping economic policy in these countries just so that they can receive billions of dollars in aid loans from them.

[Japinat]

I read that too. With the status before as a legal tender, every business would have to accept it, something the IMF definitely doesn't want. They prefer Bitcoin to be an option, not a requirement, and that was a big condition for El Salvador to get their loan.

In the end, it doesn't really shake up the Bitcoin market much. El Salvador's strategy has been more about buying Bitcoin as a strategic reserve, and the IMF isn't too bothered by that. So, it's all good as El Salvador gets their loan, and businesses can decide for themselves whether to accept Bitcoin or not.

Forced adoption just isn't the goal; Bitcoin's here to be an alternative to fiat, not a mandate.

[Taskford]

After just over three years, El Salvador withdrew from Bitcoin the status of legal tender currency in the country president Nayib Bukele pushed the measure and became effective after the Salvadoran Legislative Assembly approved the changes the change takes place in the middle of a complex economic context for the country that is in negotiation with the International Monetary Fund for a loan of US$1.4 billion with a confusing wording
And the question now is: will this impact the value of Bitcoin both instantly and in the long term?

Despite of their withdrawal of making Bitcoin as their legal tender still there's nothing to worry on this. El Salvador still a Bitcoin friendly nation and they just do this just to secure a huge loan from IMF which for sure they would use it to buy Bitcoin.

Bitcoin still a great despite what happen and for sure it cannot affect the decision of El Salvador to invest more on Bitcoin since after all they are already benefiting on current developments happening.

For sure they would never stop on their investment especially now that America is taking good step to adapt and for sure that they would take advantage on this situation and this is beneficial to them especially that they already have lots of Bitcoin hodl for long time.

[Darker45]

It's apparently a step backward, but it is what it is. El Salvador needs huge money for their ambitious economic reforms. Despite Bukele's pronouncements, they still run to the IMF for huge funding. The IMF has the money, therefore it has the power.

This is bad news, especially because of the wrong timing. Just when no less than the US has began to grow warm on Bitcoin, El Salvador has instead sacrificed certain adoption gains.

But this doesn't matter to Bitcoin's price, short term or long term. The strong demand for Bitcoin today isn't coming from that country anyway.

[MArsland]

IMF told EL Salvador to limit their dealings with bitcoin for them to have full access to the loan, and I believe that was what El Salvador did just to please IMF by not using bitcoin as a legal tender anymore. However, that doesn't mean that the vision of Bukele with Bitcoin and El Salvador is dead, because Bukele is working tirelessly to make sure that students and household in El Salvador learns bitcoin by giving every house hold bitcoin node and students are also trained on bitcoin blockchain. El Salvador continues to stack more bitcoin.

This is like the fear of fiat worshipers whose existence is increasingly marginalized there. Moreover Bukele emphasizes students to learn bitcoin because the concept is much easier to understand than fiat. No need to worry because El Salvador will not simply limit bitcoin transactions in a short time. As long as Bukele holds his vision, he has the authority to raise the limit higher. The IMF feels that the flow of money in El Salvador is more dominant in bitcoin than in fiat.

[stadus]

They're the first country to declare Bitcoin legal tender, and now the first to drop it. --- gosh they're setting world records!

If only they really had a choice... This country needed funding, so they had to play by the rules. But actually, even though Bitcoin is legal in El Salvador, people hardly use it for everyday transactions. It pretty much shows what's really happening so the change is not hard to accept.

[YOSHIE]

And the question now is: will this impact the value of Bitcoin both instantly and in the long term?

Although international loan requirements are not allowed by certain countries to use crypto currencies as did El Salvador, in my understanding will not affect Bitcoin in terms of value or price The reason: El Salvador is not the only country that is adopted by Bitcoin and makes it a crypto currency official/legal payment tool.

Besides, in El Salvador the people there still use Bitcoin as a digital currency that can be used for investment and trade activities, it's just not permitted as a means of payment For me Bitcoin will affect the time of purchase and sale, if as a means of payment the value remains stable as it is today, except the El Salvador country sells all Bitcoin in the Crypto market in large quantities Not allowed to save bitcoin, as a condition of international loan it might affect the value of bitcoin itself, I think so.

[Z-tight]

Sad news for we bitcoiners, BTC is no longer a legal tender, and accepting BTC is now voluntary in El Salvador. However, if we must be honest, people in El Salvador never really used BTC, i have said this many times already, many of them do not understand it and adoption was very low despite their government efforts.

A lot of people have been talking about how BTC has helped their economy, but many of us have corrected them that that's not how BTC works, BTC is a decentralized currency, it cannot just magically improve their economy or settle their debts. If it did, they would not be needing these huge loans at the expense of a legal tender status.

[Lucius]

Sad news for we bitcoiners, BTC is no longer a legal tender, and accepting BTC is now voluntary in El Salvador. However, if we must be honest, people in El Salvador never really used BTC, i have said this many times already, many of them do not understand it and adoption was very low despite their government efforts.

A lot of people have been talking about how BTC has helped their economy, but many of us have corrected them that that's not how BTC works, BTC is a decentralized currency, it cannot just magically improve their economy or settle their debts. If it did, they would not be needing these huge loans at the expense of a legal tender status.

I would not say that it is sad news, rather that it was expected considering that the actual use of BTC in that country is realistically below 10%, and at the same time the state needs money from those who do not like BTC at all, so I would call this move logical, no matter how much it seems that Bitcoin has lost its first country, because in fact it never had one.

Legal tender is just a nice story that they clearly failed to sell to the world, and paradoxically, BTC was more accepted in some countries where it is not legal tender even today, than in El Salvador.

What El Salvador failed to do when they discovered BTC was invest in it much more aggressively, because if they had several tens of thousands of BTC in their possession today, then they might not need the help of the vultures from the IMF.

[BlackHatCoiner]

If this is true, then it's good news. Bitcoin does not need to be enforced through legal tender laws. This is fiat currency philosophy. Bitcoin does fine just by letting it play in the free market, as much free of regulation as possible.

[PX-Z]

Well, it's still okay nothing change despite of the order, their investments are still there and paying bitcoin is still an option for their people. What worse to happen is if IMF or their government start selling their holdings, that time bitcoin price will be highly affected for sure.

[Zoomic]

I don't think such order is going to affect bitcoin in any way. Bitcoin is not banned in El Salvador, the citizens are only given the option to choose to accept Bitcoin or not. Without being biased, I think it is also proper for a country that has more than one legal currencies to grant their citizens the right to choose what they wish to accept at a particular point, especially when it has to do with a digital currency which many might not really understand how it works. Everything is all about agreement between the two parties involved in the transaction.

[Majestic-milf]

It's apparently a step backward, but it is what it is. El Salvador needs huge money for their ambitious economic reforms. Despite Bukele's pronouncements, they still run to the IMF for huge funding. The IMF has the money, therefore it has the power.

This is bad news, especially because of the wrong timing. Just when no less than the US has began to grow warm on Bitcoin, El Salvador has instead sacrificed certain adoption gains.

But this doesn't matter to Bitcoin's price, short term or long term. The strong demand for Bitcoin today isn't coming from that country anyway.

What a way to declare power to the fiat. This just means one thing; the IMF aren't really I support of the fact that El Salvador declared the use of Bitcoin as legal tender but I thought that with the number of Bitcoin the country has accumulated over the years should have been enough to fund their projects?
The way I see it is that President Bukele had finally bowed under pressure from the IMF who feel that the use of Bitcoin as legal tender poses a lot of financial risks but I think the man knew that before he took that bold step right? I guess that's their own means of negotiation in other for them to grant the loan.
 The IMF for a long time have felt threatened by El Salvador's decision to use Bitcoin as legal tender cause it has taken the potential power they (IMF) have alongside the banks that support it and countries who have received the intervention of the IMF are always not better off than the ones that don't so what's the assurance that El Salvador would get back on their feet after this.

[famososMuertos]

::/ /:::

OP:
There is a thread with an extensive discussion on the topic, and in fact the conversation is taking place there, I could have opened a related topic and continued it there...

We don't create unnecessary threads, just do the right thing.

I'll add my opinion to the referred topic.  January 31, 2025, 12:43:41 AM

Sad... in an assembly and after pressure from the IMF who asked to mitigate the risks of bitcoin... blah, blah, anyway a hitup for our anarchist ego...(!?)

Fuente:https://www.bbc.com/mundo/articles/c4gpv776zd0o (Spanish)

Source_: https://www.france24.com/en/live-news/20250130-el-salvador-merchants-no-longer-obliged-to-accept-bitcoin

 

Source:El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻