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El Salvador 2025 Cryptocurrency Regulation: The First Country to Use Bitcoin as a Fiat Currency

Source: CoinWorld
El Salvador has shifted from forced adoption of Bitcoin to a regulated voluntary framework in 2025, revoking Bitcoin’s fiat currency status while maintaining its holdings of 6,313 bitcoins (worth $702 million). The country has launched cryptocurrency investment banking licenses for institutions with capital of more than $50 million, set up tax exemptions for cryptocurrency transactions, and promoted geothermal Bitcoin mining. Current regulatory focus is compliance, international cooperation, and anti-quantum computing security measures for state-owned assets.
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