Recent reforms in El Salvador have redefined the role of Bitcoin in the country’s economy, sparking divided opinions both locally and internationally. However, from a legal and practical perspective, it is crucial to analyze what really changes with this new regulation.

The main legislative adjustments include:

• The removal of Bitcoin’s legal tender status and mandatory acceptance.
• The reduction of state involvement in Bitcoin’s operation, including its use for tax payments.

While these reforms mark a shift in the government’s strategy, what are their implications? The reality is that the state platform facilitating its use has been eliminated, and the option to pay taxes with Bitcoin has been removed. However, regarding citizens and the private sector, Bitcoin retains its accessibility and functionality within the Salvadoran market, as it remains legal tender and it is still possible to establish obligations in this cryptocurrency in accordance with the reform.

Aside from its volatility, Bitcoin represents a decentralized global financial network that can be a valuable tool for businesses and individuals. In particular, for small and medium-sized enterprises (SMEs), its adoption could lead to lower transaction costs, access to new markets, and diversification of payment methods. However, the real benefits of these advantages depend directly on education and knowledge of the digital asset.

The existence of legislation that defines which assets are considered currencies does not guarantee their use if the population does not understand or adopt them in their daily transactions. In this regard, Bitcoin’s continued viability as an option in the Salvadoran economy will depend less on regulations and more on the acceptance and financial education of the population, regardless of its current legal status.

Ultimately, although the regulatory changes have sparked debate, Bitcoin maintains its legal validity in El Salvador and continues to offer tax advantages on capital gains. However, the real challenge lies in its adoption and understanding by society. Only through education and effective use of this technology can its regulation lead to a tangible impact on the country’s economy.