mia_rose_lawyer
Fri Feb 28 2025
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5 answers
1037
Why did El Salvador reform bitcoin?
El Salvador reformed its Bitcoin policy due to several reasons. Primarily, the reform was a response to pressure from the International Monetary Fund (IMF) in order to secure a $14 billion loan. Additionally, the low usage of bitcoin among the population, with only about 8% using it for payments, indicated limited practical application. Furthermore, the volatility of bitcoin's price and concerns over its use in illegal activities such as money laundering also contributed to the decision. Overall, the reform reflects a balance between satisfying international financial standards and addressing domestic economic challenges.
