The Legislative Assembly of Al Salvador has amended its bitcoin law, allowing traders to accept bitcoin as payment.
This change aligns with the conditions set by the International Monetary Fund for a loan of $ 1.4 billion to increase the nation’s economy.
Al Salvador made history by becoming the first country to adopt Bitcoin (BTC) as a legal tender in September 2021 with a US dollar. The initiative of the champion by President Naib Bukele demanded to increase financial inclusion and encourage economic development.
However, the need to accept bitcoin for all businesses faced criticism due to the value instability of cryptocurrency and the limited understanding of the population of digital currencies.
No more compulsory bitcoin acceptance
Recent legislative reforms addressed the concerns by allowing businesses to choose from whether to accept bitcoin, According To Yahoo.
Additionally, the government will no longer accept bitcoin for tax payment and is planning to reduce its participation in bitcoin-related activities, including refunding the use of the state-proposed Chivo Wallet App.
These adjustments were important in securing the IMF loan, which aims to stabilize the economy of Al Salvador. The IMF had previously expressed apprehension about the adoption of Lalvador’s bitcoin, citing the risk for financial stability and consumer protection.
Bitcoin acceptance from limiting voluntary and governmental participation wants to remove these concerns by maintaining the legal status of bitcoin.
