Bitcoin News Today: El Salvador Revokes Mandatory Bitcoin Use as IMF Loan Conditions Met

El Salvador has revised its national Bitcoin policy as part of broader economic reforms, aligning with the conditions of a $1.4 billion loan from the International Monetary Fund (IMF). In January 2025, the country’s Legislative Assembly passed reforms to make Bitcoin acceptance voluntary for businesses, a shift from its 2021 adoption of the cryptocurrency as legal tender. The change was a prerequisite for securing the IMF loan and aims to ease economic pressure on local enterprises while maintaining the government’s active Bitcoin acquisition strategy [1].

Despite the relaxation of mandatory usage, the National Bitcoin Office continues to manage the country’s Bitcoin reserves, and President Nayib Bukele has emphasized that Bitcoin purchases will remain a priority. “No, it does not stop (the purchase of bitcoin). If it didn’t stop when the world condemned us to ostracism and most ‘bitcoiners’ abandoned us, it won’t stop now and it won’t stop in the future,” Bukele stated [1]. This signals a continued commitment to integrating Bitcoin into the national financial framework, even as its legal status adapts to external pressures.

The reforms are seen as a pragmatic response to global critique and macroeconomic realities. Analysts note that by maintaining Bitcoin purchases while altering its legal status, El Salvador is adopting a balanced approach to preserve digital asset reserves while aligning with international financial obligations [1]. The move also reflects Bukele’s broader vision for the country’s digital transformation, with the government seeking to reinforce its role as a regional leader in cryptocurrency adoption.

In a separate but related development, El Salvador has also expanded its international crypto engagement. On July 31, 2025, the Central Bank of Bolivia signed a memorandum of understanding with El Salvador’s National Commission of Digital Assets to promote cross-border virtual asset initiatives. This partnership aims to strengthen digital financial infrastructure and reinforce El Salvador’s position as a key player in Latin America’s crypto landscape [6].

Domestically, the policy shift is expected to create a more flexible economic environment, reducing the regulatory burden on businesses while allowing the government to continue its strategic Bitcoin investments. The reform also coincides with the approval of constitutional amendments in July 2025 that remove presidential term limits and extend Bukele’s term from five to six years. Supporters argue that the change ensures long-term stability for implementing digital and economic reforms, including the expansion of crypto-based financial systems [3].

While the changes have drawn mixed reactions internationally, with concerns raised about democratic norms, Bukele remains highly popular domestically. The government has framed the reforms as necessary for sustaining national progress and maintaining economic resilience in an uncertain global climate [2].

Source:

[1] El Salvador approves indefinite presidential reelection (https://timesofindia.indiatimes.com/world/rest-of-world/el-salvador-approves-indefinite-presidential-reelection/articleshow/123040303.cms)

[6] El Salvador teams up with Bolivia to expand crypto adoption (https://www.mitrade.com/insights/news/live-news/article-3-1000981-20250731)