El Salvador has made a big change to its Bitcoin laws to follow the rules set by the International Monetary Fund (IMF). This change comes as part of a $1.4 billion loan agreement with the IMF, which asked the country to reduce its involvement with Bitcoin. This recent move aims to balance its commitment to crypto while securing financial stability.
What Changed in the Law?
On January 29, El Salvador’s Congress swiftly approved a bill that modifies the country’s Bitcoin regulations. Earlier, businesses in El Salvador were required by law to accept Bitcoin as payment.
But under the new law, this rule has been removed. Now, businesses can choose whether or not to accept Bitcoin.
The decision came shortly after President Nayib Bukele sent the proposed legislation to the Legislative Assembly, which was approved quickly by the country’s Congress, with 55 votes in favor and only two against.
The government says this change was necessary as part of El Salvador’s $1.4 billion loan deal with the IMF, which required the government to scale back its direct involvement with Bitcoin.
El Salvador Keeps Buying Bitcoin
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 6,044 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 Crypto Journey
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.
