El Salvador’s Congress has swiftly approved legislation to amend its Bitcoin laws, aligning with an agreement reached with the International Monetary Fund (IMF).
The legislation was ratified by the Legislative Assembly shortly after President Nayib Bukele submitted it, according to Reuters. This move follows a $1.4 billion loan deal El Salvador secured with the IMF in December. A key condition of the loan was for the government to reduce its Bitcoin involvement and make Bitcoin optional for private sector merchants.
Legal Tender Status Remains
The reform, passed with a strong majority, modifies the previous mandate that required businesses to accept Bitcoin as payment. Ruling party lawmaker Elisa Rosales emphasized that the amendment aims to ensure Bitcoin’s “permanence as legal tender” while facilitating its “practical implementation.”
Despite the IMF agreement, El Salvador continues to accumulate Bitcoin. The country recently purchased an additional 12 BTC for its strategic reserves. A spokesperson from the El Salvador Bitcoin Office confirmed the country’s intention to keep buying Bitcoin and even “intensify” purchases in 2025. The spokesperson also highlighted the country’s successful rebranding and its status as a “winning country strategy” case study.
Bitcoin Holdings and Profits
El Salvador currently holds 6,049 BTC, valued at approximately $633 million, according to the Bitcoin Office official tracker. This portfolio has generated a 127% profit, with an average purchase price of $46,000 per Bitcoin. El Salvador made history in 2021 when it became the first country to adopt Bitcoin as legal tender.
Interestingly, former U.S. Senator Bob Menendez, a vocal critic of El Salvador’s Bitcoin adoption, was recently sentenced to 11 years in prison for bribery involving gold and cash. During a search of his home, FBI agents found a substantial amount of cash and gold bars.
What The Author Thinks
El Salvador’s decision to amend its Bitcoin laws to comply with the IMF agreement demonstrates a pragmatic approach to balancing its commitment to Bitcoin with its need for international financial support. While the country continues to accumulate Bitcoin and champion its adoption, it also recognizes the importance of maintaining a stable economic relationship with the IMF. This calculated move suggests that El Salvador is adapting its Bitcoin strategy to ensure its long-term economic well-being.
Featured image credit: Josh via Flickr
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