El Salvador has revoked Bitcoin's status as legal tender to secure a deal with the IMF, which will provide $3.5 billion in financial support for economic reforms. The agreement mandates that Bitcoin acceptance be voluntary for the private sector, restricts public sector participation, and requires the privatization of the Chivo wallet. Opinions are divided; some believe this is a temporary setback in a broader strategy to adopt Bitcoin, while others see it as a failure of policy. Critics like former tech director Monica Taher argue that the government's lack of an educational strategy hindered Bitcoin adoption and foreign investment. She noted that El Salvador received the lowest foreign investment in Central America in 2024, attributing this to issues with rule of law and governance. Some Bitcoin proponents see potential growth through grassroots organizing, fueled by factors like low crime rates and a burgeoning culture surrounding Bitcoin tourism. However, Taher anticipates further declines in Bitcoin adoption among the general population, which currently remains low.

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