The Salvadoran government has urgently amended its bitcoin legislation, dispensing with the requirement for companies to accept BTC as payment. This reform is part of a $1.4 billion agreement with the International Monetary Fund (IMF).
A swift reform to secure IMF funding
The Legislative Assembly of El Salvador adopted the reform by an overwhelming majority of 55 votes to 2, shortly after its presentation by President Nayib Bukele. The new law frees private companies from the obligation to accept bitcoin as a means of payment. This amendment directly responds to the conditions set by the IMF as part of a $1.4 billion loan agreement concluded in December. The institution required that the Bukele government limit its exposure to bitcoin and make its use optional for merchants.
El Salvador's Bitcoin strategy and its outcomes
Despite these regulatory changes, the Salvadoran government continues its bitcoin accumulation strategy. The country currently holds 6,049 BTC, worth about $633 million, according to data from the Bitcoin Office. This reserve shows outstanding performance with a profit of 127% on an average purchase price of $46,000. The Bitcoin Office of El Salvador has confirmed its intention to intensify its acquisitions in 2025. “Our national strategy has proven successful and now serves as a model,” said a spokesperson for the Bitcoin Office.
Controversies and adaptation in El Salvador's crypto strategy
Ironically, Bob Menendez, the former U.S. senator who had strongly opposed El Salvador’s adoption of bitcoin, was sentenced to 11 years in prison for corruption. Nevertheless, El Salvador, the first country to adopt bitcoin as legal tender in 2021, is demonstrating its ability to adapt its policy while maintaining its role as a pioneer in crypto adoption.
El Salvador continues to assert its position as a leader in cryptocurrency adoption, effectively adapting its strategy to international demands, despite regulatory changes.
