In a significant development, the Congress of El Salvador has swiftly enacted amendments to its Bitcoin legislation to align with the stipulations of a $1.4 billion loan agreement reached with the International Monetary Fund (IMF) in December. The amended law, which received 55 votes in favor and only two against, overturns the previous requirement mandating businesses to accept Bitcoin as a form of payment, thus rendering its use in the private sector entirely voluntary.
The reform, which was ratified shortly after its introduction by President Nayib Bukele, seeks to maintain Bitcoin’s status as legal tender while enhancing its practical implementation. Elisa Rosales, a lawmaker from the ruling party, underscored the necessity of this adjustment for sustaining Bitcoin’s role within the country’s financial framework.
While the mandatory adoption of Bitcoin has been curtailed, El Salvador remains steadfast in its BTC strategy. The nation has recently increased its Bitcoin reserves by acquiring an additional 12 BTC, bringing its total holdings to 6,049 BTC, currently valued at approximately $633 million. As reported by the Bitcoin Office, El Salvador’s portfolio has achieved an impressive 127% profit, with an average acquisition price of $46,000 per Bitcoin. Officials have also expressed intentions to enhance Bitcoin acquisitions in the year 2025.
In 2021, El Salvador made history as the first nation to adopt Bitcoin as legal tender, a move that continues to garner global interest. A spokesperson for the Bitcoin Office recently stated that the country has successfully executed “the greatest rebrand in history” and serves as a prominent case study for a successful national Bitcoin strategy.
On the same day that the legislative updates were enacted in El Salvador, former U.S. Senator Bob Menendez, a vocal opponent of the country’s Bitcoin adoption, was sentenced to 11 years in prison on corruption charges involving cash and gold bribes. FBI agents uncovered $480,000 in cash and gold bars valued at approximately $150,000 in his residence, thereby illustrating the contrasting narratives surrounding financial governance and digital assets.
