The International Monetary Fund (IMF) has reached a $1.4 billion loan agreement with El Salvador. In return, the Central American country, which made bitcoin legal tender in 2021, had to remove some of its pro-Bitcoin policies. The author spent three months in El Salvador around the time the Bitcoin law went into effect and believed it was a positive development for the country.
However, there were aspects of the law that the author disliked, and these aspects are now being removed. Most importantly, Salvadoran merchants will no longer be obligated to accept bitcoin. The author believes that Bitcoin adoption should happen voluntarily and not be forced on anyone. Additionally, El Salvador will have to wind down operations of its Chivo wallet, which the author found to be incredibly buggy in 2021.
It is slightly disappointing that Salvadoran citizens won’t be able to pay tax in bitcoin anymore, but this is probably little more than a nuisance. El Salvador still goes a long way to offer an equal playing field for Bitcoin.
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