El Salvador Revises Bitcoin Law Amid IMF Deal, Maintains Commitment to Crypto

El Salvador’s Congress 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, just minutes after reaching the Legislative Assembly, with 55 lawmakers voting in favor and only two opposing.

This 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.

Bitcoin Remains a Strategic Asset in El Salvador

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.

Political Intrigue and Legal Fallout

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 to challenge global skepticism about its bold crypto experiment.