Four years after becoming the first country to adopt bitcoin as legal tender, El Salvador is taking a step back. The Legislative Assembly has approved changes to the country's Bitcoin Law, effectively removing bitcoin's status as legal currency.

El Salvador bought 5 more BTC in the last 24 hours, bringing its total Bitcoin holdings to roughly 6055 BTC, valued at $618.9 million. The country continues to increase its holdings even though only about 8% of the Salvadorian population uses Bitcoin for transactions.

El Salvador has agreed to scale back its pro-Bitcoin legislation after striking a deal with the IMF, making Bitcoin acceptance voluntary for businesses. The country also plans to unwind the Chivo wallet and stop accepting tax payments in cryptocurrency.

In order to accept a $1.4 billion loan from the IMF, El Salvador had to change some of its cryptocurrency laws.

Recently, officials in the Central American country of El Salvador approved amendments to its controversial Bitcoin law in order to guarantee a $1.4 billion loan with the International Monetary Fund (IMF),

El Salvador has quietly scaled back its ambitious cryptocurrency experiment, marking a significant reversal of President Nayib Bukele's vision to transform the small Central American nation into a bitcoin paradise.

The government secured a $1.4bn loan from the IMF, prompting a cautious approach to Bitcoin after the lender's recommendation.

El Salvador has recently updated its cryptocurrency policy following an agreement with the International Monetary Fund (IMF) that imposes limits on the official use of Bitcoin. Under the IMF conditions formalized in December as part of a $1.