El Salvador removes Bitcoin's official currency status

The Parliament of El Salvador has approved amendments to the Bitcoin Law, revoking BTC's status as an official currency. This was reported by the portal El Pais.

This status previously required merchants to accept cryptocurrency as payment alongside the U.S. dollar. The reform became possible after two years of pressure from the International Monetary Fund (IMF). The organization urged the country to "mitigate Bitcoin-related risks" in exchange for a $1.4 billion loan offer.

Since Bitcoin is no longer considered a currency, its acceptance in stores becomes voluntary, and it can no longer be used to pay taxes.

Previously, we reported that the government of El Salvador took advantage of Bitcoin's price drop to increase its cryptocurrency reserves.