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El Salvador scales back Bitcoin as legal tender after five years amid IMF pressure.

Market News
12 Aug 2026
Crypto Briefing
View Source
Neutral
El Salvador scales back Bitcoin as legal tender after five years amid IMF pressure.

Five years after making Bitcoin legal tender, El Salvador has rolled back the mandate requiring merchants to accept it, following pressure from the IMF tied to a $1.4 billion loan. While Bitcoin remains accepted, its use in remittances and financial inclusion has been minimal. The government still holds a significant Bitcoin reserve worth around $500 million and continues to buy more. The experiment boosted El Salvador's global profile but showed limited practical benefits, signaling challenges for other countries considering similar moves.

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