El Salvador has revised its Bitcoin legislation as part of a $1.4 billion agreement with the International Monetary Fund to make its use more flexible.
Changes in Bitcoin Legislation
The Salvadoran Congress quickly approved President Nayib Bukele's proposals to align the country's policies with the IMF agreement. The main changes include voluntary Bitcoin use and restrictions on tax payments in US dollars. Additionally, the government is scaling back its involvement in crypto initiatives such as the state-backed Chivo wallet.
Bitcoin Accumulation Plans
Following the IMF deal, El Salvador continues to augment its Bitcoin holdings. According to the National Bitcoin Office, the country currently holds 6,049 BTC, worth approximately $633 million. In January 2025, El Salvador acquired an additional 12 BTC, deviating from its '1 Bitcoin a Day' program to purchase 11 bitcoins valued over $1 million.
Crypto Initiatives and Partnerships
Since adopting Bitcoin as legal tender in 2021, El Salvador has implemented several initiatives, including the Volcano Energy project, using renewable volcanic energy for Bitcoin mining. The country also offers Volcano Bonds backed by Bitcoin to raise funds for infrastructure projects. In January 2025, Tether announced plans to relocate its operations to El Salvador upon securing a Digital Asset Service Provider license.
El Salvador's legislative changes on Bitcoin and its active accumulation reflect ongoing efforts to integrate the cryptocurrency into the national economy despite IMF obligations.
