As part of a new IMF loan package, El Salvador’s President Bukele agreed to three modifications to the Bitcoin Law enacted in 2021: removing the obligation for firms to accept Bitcoin as legal tender, shutting down the state-run Bitcoin wallet and payment processor Chivo, and halting Bitcoin tax payments.
While some perceive these concessions negatively, they actually address technical issues with the original law. Legal tender laws can be coercive and unnecessary, and Chivo was known to be buggy and inefficient. Alternatives like Blink already exist for digital payments. The only potentially negative aspect is the loss of Bitcoin as a tax payment option, which may inconvenience some citizens.
However, this decision was likely made in the best interest of the Salvadoran people rather than solely promoting Bitcoin. Critics who perceive Bukele as selling out or not prioritizing Bitcoin enough fail to recognize his role as a national leader responsible for addressing broader societal issues.
Ultimately, this decision reflects a pragmatic approach to governing rather than solely advancing personal agendas or ideologies.
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