El Salvador has made an important change to its Bitcoin laws to meet the requirements set by the International Monetary Fund (IMF). This shift comes as part of a $1.4 billion loan agreement with the IMF, which asked the country to reduce its involvement with Bitcoin. The goal is to balance the country’s commitment to crypto while ensuring financial stability.
On January 29, El Salvador’s Congress quickly approved a bill that changes the country’s Bitcoin regulations. Previously, businesses in El Salvador were required by law to accept Bitcoin as payment. Under the new law, that mandate has been removed, and businesses now have the choice to accept Bitcoin or not.
The bill was proposed by President Nayib Bukele and passed smoothly through the Legislative Assembly, with 55 votes in favor and only two against.
This change is a direct result of El Salvador’s $1.4 billion loan agreement with the IMF, which asked the government to reduce its direct involvement with Bitcoin. Although the law has been adjusted, the government remains committed to its Bitcoin strategy and aims to maintain its position in the crypto world.
Even with these changes, El Salvador hasn’t lost its faith in Bitcoin. The country recently bought 12 more Bitcoins, adding to its national reserves. According to Coinpedia news report, El Salvador currently holds 6,022 Bitcoins, worth about $617 million
With an average purchase price of $43,357 per Bitcoin, the country has made a 133% profit on its investment.
A spokesperson from the El Salvador Bitcoin Office said the country plans to keep buying Bitcoin and will “intensify” its efforts in 2025.
They also called El Salvador a “case study for a winning country strategy,” showing how the country has transformed its image through its bold move with Bitcoin.
El Salvador made history in 2021 by becoming the first nation to adopt Bitcoin as legal tender. While the journey has had its ups and downs, the government continues to push forward, adapting its policies while maintaining its Bitcoin strategy.
With this new law showing a compromise with international financial institutions, the government’s commitment to Bitcoin remains strong.
El Salvador holds approximately 6,022 Bitcoin tokens, worth around $572 million as of now.
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