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),

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 has reportedly removed the legal tender status of Bitcoin (BTC) after less than four years because of pressure from the International Monetary Fund (IMF).

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

El Salvador was the first country to allow Bitcoin as an official means of payment. The IMF demanded the withdrawal of the regulation – and has now prevailed.

El Salvador has added 50 BTC to its reserves in the past month, continuing its Bitcoin accumulation strategy despite adjusting regulations to meet International Monetary Fund (IMF) conditions. On Saturday, the country purchased another 5 BTC, bringing its total Bitcoin holdings to approximately 6,055 BTC, valued at over $606 million.

El Salvador has rushed to approve an amendment that will keep it compliant with the terms of its $1.4 billion IMF loan.

Despite policy changes, El Salvador remains committed to Bitcoin through continued investments and new crypto initiatives.

El Salvador's Congress on Wednesday swiftly approved a bill sent just minutes earlier by President Nayib Bukele to amend its bitcoin law to comply with a deal with a key international lender to make acceptance of the cryptocurrency voluntary.

The IMF was not ready to extend a loan to El Salvador without concessions on the country’s ongoing Bitcoin adoption efforts.