El Salvador Amends Bitcoin Law to Comply with IMF Requirements

The Salvadoran government has urgently passed a major amendment to its bitcoin legislation, abandoning the requirement for companies to accept BTC as a means of payment. This reform comes as part of a $1.4 billion loan 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.

For Elisa Rosales, a deputy from the ruling party, this reform aims to sustain the legal status of bitcoin while easing its framework of application. While El Salvador adapts to international requirements, it does not abandon its bitcoin strategy: the country has just added 12 additional BTC to its national reserves.

A Bitcoin strategy that bears fruit despite adjustments

Despite these regulatory changes, the Salvadoran government continues its bitcoin accumulation strategy with determination. 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.

Ironically, Bob Menendez, the former U.S. senator who had strongly opposed El Salvador’s adoption of bitcoin, has been sentenced to 11 years in prison for corruption. The FBI seized $480,000 in cash and $150,000 in gold bars from his home.

In summary, the first country to adopt bitcoin as legal tender in 2021, El Salvador is demonstrating its ability to adapt its policy while maintaining its role as a pioneer in crypto adoption.