The Salvadoran Congress has just adopted a major amendment to its Bitcoin legislation. The reform, which responds to IMF demands, makes it optional for businesses to accept Bitcoin, while maintaining its status as a legal tender.
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El Salvador adjusts its Bitcoin law to satisfy the IMF
According to Reuters, Legislative Assembly of El Salvador approved historic amendments to its Bitcoin law on Wednesday, January 29, as part of an 1.4 billion agreement with the International Monetary Fund (IMF). The bill, presented by president Nayib Bukele was adopted by an overwhelming majority, with 55 votes in favor, and only two against. The main amendment concerns the mandatory acceptance of Bitcoin as a means of payment by private companies. From now on, merchants will have the choice of whether or not to accept the cryptocurrency, a flexibility not previously available.
Elisa Rosales, a member of the ruling party, was keen to reassure, stressing that this amendment does not call into question the legal status of Bitcoin in the country. Rather, it is a practical adjustment designed to allay the IMF’s concerns about the country’s exposure to cryptocurrencies.
The Bitcoin strategy still in motion
Despite this regulatory relaxation, the Salvadoran government reaffirms its commitment to Bitcoin. The country’s recently added an additional 12 BTC to its national reserves, bringing its total portfolio to 6,049 BTC, valued at around $633 million. At an average acquisition price of $46,000 per Bitcoin, these investments would have generated a capital gain of 127%.
El Salvador’s National Bitcoin Office, through the voice of its director Stacy Herbert, has even announced a possible acceleration in acquisitions this year. At the same time, the government plans to restructure its Bitcoin ecosystem by gradually divesting the public wallet Chivo in favor of private solutions.
Despite the adjustments made to meet IMF requirements, El Salvador reaffirms its position as a forerunner in the institutional adoption of Bitcoin. Its influence on the international scene continues to grow, as evidenced by the growing interest of several American states to create their own strategic reserves in bitcoin.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
