Quickly understand the history and background of various well-known coins

El Salvador's Bitcoin Pivot: Voluntary Adoption Amid IMF Deal

Coin WorldThursday, Jan 30, 2025 10:13 am ET

1min read

El Salvador's Bitcoin Law Reforms: A Shift Towards Voluntary Adoption Amid IMF Agreement

El Salvador's Congress has approved amendments to its Bitcoin law, aligning with conditions set by a $1.4 billion loan agreement with the International Monetary Fund (IMF). The legislation, sent by President Nayib Bukele, was ratified on January 29, with 55 lawmakers voting in favor and only two opposing.

The reform marks a significant shift as it lifts the previous legal obligation for private businesses to accept Bitcoin as payment. Instead, Bitcoin usage by merchants will now be optional and voluntary. Elisa Rosales, a ruling party lawmaker, emphasized that the adjustment ensures Bitcoin's continued legal tender status while promoting a practical implementation framework.

Despite IMF pressures to reduce exposure to cryptocurrency, El Salvador continues to strengthen its Bitcoin position. The nation recently acquired an additional 12 BTC, adding to its strategic reserves. According to official data from the country's Bitcoin Office, El Salvador currently holds 6,049 BTC, valued at approximately $633 million.

A spokesperson for the Bitcoin Office reaffirmed the government's commitment to ongoing Bitcoin purchases, noting that the country aims to "intensify" its accumulation strategy by 2025. "We have achieved not only the greatest rebrand in history but are now a case study for a winning country strategy," the representative stated confidently.

El Salvador first made headlines in 2021 as the pioneer nation to adopt Bitcoin as legal tender. While the IMF deal signals a regulatory pivot, the Bukele administration appears determined to balance international financial obligations with its pro-crypto stance.

Amid the economic developments in El Salvador, former U.S. Senator Bob Menendez, a vocal critic of the country's Bitcoin adoption, was sentenced to 11 years in prison on January 29. Menendez faced charges of accepting bribes in cash and gold, with FBI agents reportedly discovering $480,000 in cash and gold bars valued at around $150,000 during a search of his home.

The timing of Menendez's sentencing adds a twist to the narrative, as critics like him once argued that El Salvador's Bitcoin policy would attract financial chaos and corruption. Yet, with the recent legislative amendments and strong profits from Bitcoin holdings, the country continues

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.