El Salvador has enacted a law under IMF pressure, introducing changes to the country's use of Bitcoin.
New Changes to Bitcoin Law
On January 29, El Salvador's Congress approved amendments to the Bitcoin law, aligning with a $1.4 billion IMF loan agreement. The amendments, sent by President Nayib Bukele, were ratified minutes after reaching the Legislative Assembly, with support from 55 lawmakers and two votes against. The reform lifts the previous requirement for private businesses to accept Bitcoin as payment, making its use voluntary. Elisa Rosales, a ruling party lawmaker, emphasized that the changes ensure Bitcoin's continued legal tender status and promote practical implementation.
Bitcoin as a Strategic Asset
Despite IMF pressures to reduce cryptocurrency exposure, El Salvador continues to bolster its Bitcoin position. The country recently acquired an additional 12 BTC, increasing its strategic reserves. According to the Bitcoin Office, El Salvador currently holds 6,049 BTC, valued at approximately $633 million. A spokesperson for the Bitcoin Office reaffirmed the government's commitment to ongoing Bitcoin purchases, noting a goal to "intensify" its accumulation strategy by 2025. "We have achieved not only the greatest rebrand in history but are now a case study for a winning country strategy," the representative stated.
Political and Legal Intrigue
During this period, former U.S. Senator Bob Menendez, a critic of El Salvador's Bitcoin adoption, was sentenced to 11 years in prison for accepting bribes in cash and gold. FBI agents reportedly found $480,000 in cash and gold bars valued at around $150,000 at his home. Menendez’s sentencing adds intrigue to the unfolding narrative, as critics like him argued the Bitcoin policy would lead to financial chaos and corruption. However, with recent legislative amendments and significant Bitcoin profits, the country continues to challenge global skepticism.
El Salvador remains steadfast in its crypto strategy, despite external pressures and ongoing political drama. Recent changes to the Bitcoin law reflect a balance between international financial obligations and a commitment to innovation.
