The government of El Salvador has recently quietly amended its laws, officially removing Bitcoin (BTC) as the country's legal tender, making it the first nation in the world to repeal Bitcoin's legal tender status. This change has attracted widespread international attention and has sparked new discussions about Bitcoin's future development.
Policy Change and Background
In 2021, El Salvador became the first country in the world to make Bitcoin a legal tender, allowing the cryptocurrency to be used alongside the US dollar. However, according to the latest amendments, Bitcoin no longer has mandatory circulation status, meaning businesses and government agencies are no longer required to accept BTC as a payment method. This policy adjustment was not widely announced and came into effect quietly.
Government's Position and Impact
Although Bitcoin is no longer legal tender, the Salvadoran government has stated that the country's "Bitcoin City" project and BTC reserve plan will continue. Furthermore, President Nayib Bukele remains a supporter of Bitcoin, emphasizing that the decision was made primarily to "adjust regulations to give the market greater flexibility," rather than completely abandoning the Bitcoin economic strategy.
Market Reactions and International Attention
Supporters' View: Many economists believe this is a more pragmatic approach, as the mandatory use of Bitcoin as a payment method may not have achieved the expected results, especially in local business applications.
Critics' View: Some members of the cryptocurrency community argue that this move could undermine Bitcoin's feasibility as a global payment tool and may even affect market sentiment.
As this transformation takes effect, attention turns to whether other countries that had considered following El Salvador's example will reassess their cryptocurrency policies.