El Salvador's Bitcoin U-turn: Voluntary Acceptance, Dollar Taxes, and IMF Deal

El Salvador's Congress has swiftly amended its Bitcoin law to comply with the IMF agreement, securing a $1.4 billion loan. The reforms make Bitcoin acceptance voluntary for businesses while maintaining its legal tender status. The country holds 6,049 BTC, worth approximately $633 million, with a 127% unrealized profit. El Salvador continues to accumulate Bitcoin, recently purchasing 12 BTC on January 21. Businesses are no longer required to accept Bitcoin as payment, and tax payments are now restricted to US dollars. Tether Group plans to relocate operations to El Salvador after Bitfinex Derivatives secured a Digital Asset Service Provider license. President Bukele mocked former Bitcoin critic Senator Bob Menendez following his bribery conviction.

El Salvador has adjusted its Bitcoin policies to comply with International Monetary Fund (IMF) requirements, securing a $1.4 billion loan agreement while keeping its commitment to cryptocurrency. The country's Congress, controlled by President Nayib Bukele’s New Ideas Party, approved reforms within minutes of receiving them. The new amendments remove the requirement for businesses to accept Bitcoin as payment, making its use voluntary across the private sector. Tax payments will now be restricted to U.S. dollars, addressing one of the IMF’s main concerns about the country’s crypto exposure.

Elisa Rosales, a lawmaker from the ruling party, explained that the reforms passed with 55 votes in favor and only two against. The changes aim to ensure Bitcoin’s continued status as legal tender while making its implementation more practical for everyday use. Despite these modifications, El Salvador maintains its position as a leading crypto-friendly nation. The country currently holds 6,049 Bitcoin, valued at approximately $633 million, representing an unrealized profit of 127% on its investment.

The government has shown no signs of slowing its Bitcoin accumulation strategy. Following the IMF agreement, El Salvador purchased 11 Bitcoin valued at over $1 million, deviating from its previous “1 Bitcoin a day” program. The country added another 12 Bitcoin on January 21, 2025. El Salvador adds another 11 BTC to our Strategic Bitcoin Reserve!

El Salvador’s commitment to cryptocurrency infrastructure remains strong. The government has installed more than 200 Bitcoin ATMs throughout the country, making it one of the most accessible regions for Bitcoin transactions