El Salvador’s Legislative Assembly has approved amendments to its Bitcoin law to align with a deal struck with the International Monetary Fund (IMF) for a loan. The decision will slightly shift the country’s approach to crypto regulation, where accepting BTC payments will become optional for private businesses.
According to a Reuters report on January 29, the legislation was ratified within minutes of being sent by President Nayib Bukele. With the majority of Congress hailing from Bukele’s New Ideas Party, the measure passed swiftly, receiving 55 votes in favor and only two against.
Elisa Rosales, a lawmaker from the ruling party, said the reforms were necessary to ensure Bitcoin’s continued status as legal tender while making its use within the country’s jurisdiction more “practical.”
El Salvador accepts IMF’s plea, plans to acquire more BTC still in play
The legislative decision comes after El Salvador secured a $1.3 billion loan deal with the IMF in December 2024. As part of the agreement, the government agreed to scale back its embrace of Bitcoin, where the country’s private sector’s acceptance of Bitcoin will now become voluntary.
Per a December 10 report from the Financial Times, the IMF agreement is expected to pave the way for $2 billion in loans from the World Bank and the Inter-American Development Bank. It is also designated to support macroeconomic adjustments and financial structural reforms in the country.
El Salvador became the world’s first country to adopt Bitcoin as legal tender in 2021, a move that initially drew sharp criticism from international financial institutions, including the IMF. The policy body urged the South American nation to repeal the law due to purported macroeconomic, legal and financial reasons.
However, President Bukele and his administration stuck to their plans, persisting with their “buy one Bitcoin a day” strategy to build up a federal reserve. As of January 30, El Salvador holds 6,049 BTC, valued at approximately $634.44 million, according to data from its Bitcoin Office. The nation’s crypto portfolio has yielded a 129% profit, with an average purchase price of $46,000 per Bitcoin.
The Bitcoin Office data also shows the country purchased 2 BTC for its Strategic Bitcoin Reserve on January 27, taking its total additions to 14 coins in the last 10 days.
President Bukele initiates crackdown on misuse of government funds
In other developments, Nayib Bukele revealed in an X post on Thursday that he sent the Anti-Corrution Law proposal to the country’s Legislative Assembly, looking to “ strengthen transparency and integrity of public officials.”
In his post, the El Salvador head outlined several reasons for the law’s relevance, which could see policymakers punished for partaking in corruption and misusing government funds.
“Public servants and their families will be required to submit a wealth declaration along with their annual income tax return every year (this declaration will be published and accessible to any citizen),” denoted Bukele.
Through the lawful mandate, he is pushing for the Court of Accounts to work directly with the Attorney General’s Office in auditing and investigating corrupt officials.
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Source: https://www.cryptopolitan.com/el-salvador-approves-bitcoin-law-with-imf/