El Salvador Officially Revokes Bitcoin's Legal Tender Status

[Suba]

El Salvador has shaken the crypto world once again after the Salvadoran government officially revoked Bitcoin's legal tender status. The government also banned and halted purchases of Bitcoin using public funds.

In 2021, El Salvador was known as the first country to adopt Bitcoin and legalize it as legal tender. The decision to revoke Bitcoin's legal tender status came after the government signed a $1.4 billion loan agreement with the IMF, which included several conditions imposed by the IMF, including the revocation of Bitcoin as legal tender and the suspension of Bitcoin purchases using public funds.

As of September 2025, the Salvadoran government still holds at least 6,313 BTC held as national reserves. Since 2021, El Salvador has been experimenting with country-wide Bitcoin adoption, and after four years, the results have been mixed.

Pros and Cons
Pros: They consider the revocation of Bitcoin as legal tender not a failure but a strategy to maintain a balance between financial innovation and economic stability.
Cons: They think that Bitcoin adoption policies only benefit the government and investors but not the people.

 

[kit_hung]

El Salvador has shown economic courage by taking a new approach to Bitcoin. While the decision may seem like a step backwards, some see it as a way to protect the country’s stability.

Remember, technological success comes with experimentation and adjustment. The deregulation of Bitcoin is not a failure, but a realignment in the interests of the majority.

For those interested in crypto, there is still room to learn and innovate. The world of finance is changing rapidly—it’s important to keep up and learn.

 

[Min George]

They didn't consider the economic implications very well. That's a very big drawback for mainstream crypto adoption now.

 

[kit_hung]

They didn't consider the economic implications very well. That's a very big drawback for mainstream crypto adoption now.

It is true that removing Bitcoin’s status as a legal tender could have a significant impact on the direction of financial technology. Such a move raises concerns among investors and ordinary users, especially when there has been no comprehensive assessment of the economic impact.

On the other hand, there is still room to learn from these challenges. States and organizations can use this experience to improve digital policies and infrastructure. Blockchain technology has great potential, but it requires a stable legal and economic environment.

 

[Webster]

In 2021, El Salvador was known as the first country to adopt Bitcoin and legalize it as legal tender. The decision to revoke Bitcoin's legal tender status came after the government signed a $1.4 billion loan agreement with the IMF, which included several conditions imposed by the IMF, including the revocation of Bitcoin as legal tender and the suspension of Bitcoin purchases using public funds.

Wondered why it happened.
Now we know.

the Salvadoran government still holds at least 6,313 BTC

Hopefully they hold onto that Bitcoin 'cause if they ever dump any of it....