Key Takeaways
- El Salvador’s Congress quickly passed a bill amending its Bitcoin law to align with an IMF loan agreement, ensuring voluntary acceptance.
- The reform maintains Bitcoin as legal tender while limiting mandatory use, a shift urged by the IMF in exchange for financial support.
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El Salvador’s Congress approved legislation amending the country’s Bitcoin law to make acceptance of the digital asset voluntary, according to a Reuters report.
The change aligns with requirements under El Salvador’s $1.4 billion loan agreement with the International Monetary Fund.
The bill passed with 55 votes in favor and two against, with President Nayib Bukele’s New Ideas Party commanding a majority in Congress.
The reform addresses IMF concerns by making private sector participation in Bitcoin transactions optional, while maintaining its legal tender status.
“This guarantees Bitcoin’s permanence as legal tender while improving its practical implementation,” said lawmaker Elisa Rosales.
The modification represents a shift from El Salvador’s 2021 position when it became the first nation to adopt Bitcoin as legal tender.
The policy adjustment comes as crypto markets show renewed optimism, partly driven by Donald Trump’s election victory and expectations of more favorable regulatory changes from Washington.
Bitcoin is currently trading just below $106K, rebounding from a drop below $100K on Monday.
Crypto assets are gaining momentum after the Federal Reserve kept interest rates steady, with Fed Chair Jerome Powell’s comments signaling a positive outlook for risk assets such as Bitcoin.
Despite the IMF-driven policy shift, Bukele’s administration has reaffirmed its commitment to adding more Bitcoin to national reserves.
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