Legal tender is a much confused term.
Does it mean…
a) you must accept it in trade
b) it’s not illegal to accept it
c) you can’t sue if it’s offered in settlement of any debt
Bukele went with A, a very interventionist and extreme rule. China has at times made it illegal tender (judicial penalties if you are caught using it), but the UK wins by making GBP its only legal tender and using definition C.
Why wins? Because they leave the door open for trade to happen In any asset, from barter to shells to pounds to bitcoin.
So why isn’t the UK really winning? Because they apply capital gains tax to the trade of anything which isn’t GBP which is a huge disincentive in letting any other asset become a de facto currency.
El Salvador maintaining a zero CGT status for Bitcoin is the real gem of a law. It’s non-interventionist, allows a fair playing field and voluntary organic growth and demonstrates a more valid economic experiment to take place.
The IMF changes have been ironically beneficial in the long term.
Now, the UK, please stand for and vote for tax rule changes too.