El Salvador scales back Bitcoin legal tender status

El Salvador has revoked the status of Bitcoin as legal tender, transitioning its use to a voluntary basis for transactions between private citizens and companies. This legislative shift follows low public adoption and pressure from the International Monetary Fund (IMF), which conditioned a $1.4 billion loan on the reduction of risks associated with the cryptocurrency.

Despite the government's 2021 initiative to pair Bitcoin with the US dollar, recent data indicates minimal engagement. A January 2025 survey revealed that 91.8% of Salvadorans did not use Bitcoin in the previous year, with 76.2% stating they had never used the cryptocurrency. President Nayib Bukele previously acknowledged that the asset did not achieve the expected level of adoption.

While the legal mandate has been rescinded, the country is still planning several technology and finance events for November. These include the Bitcoin Histórico conference in San Salvador, the Bitcoin Capital Summit, and the EmTech AI LATAM conference, alongside a summit focused on Bitcoin circular economies in El Zonte.