The El Salvador Congress swiftly approved a modification to the Bitcoin law proposed by President Nayib Bukele.
The amendment was adopted as part of the country’s $1.4 billion loan agreement with the International Monetary Fund and made Bitcoin usage optional rather than mandatory.
El Salvador became the first country to adopt Bitcoin as legal tender alongside the U.S. dollar in 2021, attracting global attention. However, the IMF had expressed concerns over Bitcoin being mandatory for the private sector and urged the country to reduce its exposure. Following the agreement reached in December, Congress, backed by Bukele-aligned lawmakers, approved the legal amendment with a vote of 55 in favor and 2 against.
Despite this change, the Bukele administration announced that it would continue accumulating Bitcoin. As global political developments drive renewed interest in cryptocurrencies, El Salvador is seen as shifting to a more flexible regulatory framework while maintaining Bitcoin’s legal status. The agreement with the IMF is viewed as a step toward ensuring the country’s economic stability while keeping Bitcoin’s official status intact.
