Bitcoin law amended in El Salvador after IMF agreement
Bitcoin acceptance is now voluntary for businesses in El Salvador after a swift congressional vote.
El Salvador’s Congress has quickly approved a reform to its bitcoin law, aligning it with a recent agreement with the International Monetary Fund (IMF). The amendment, proposed by President Nayib Bukele and passed within minutes, makes bitcoin acceptance voluntary for businesses. Lawmakers from Bukele’s New Ideas Party, who hold a majority in Congress, ensured the bill’s swift passage.
Bitcoin was declared legal tender in El Salvador in 2021 alongside the US dollar, drawing international attention and strengthening Bukele’s reputation as a cryptocurrency advocate. However, an IMF-backed $1.4 billion loan deal, finalised in December, required limits on the government’s bitcoin exposure.
The lender specifically urged El Salvador to make bitcoin acceptance optional for the private sector, a key aspect of the newly approved law.
Ruling party lawmaker Elisa Rosales defended the reform, arguing it would secure bitcoin’s status as legal tender while ensuring its effective implementation. The law passed with 55 votes in favour and only two against.
Bukele’s government remains committed to bitcoin, recently confirming plans to continue acquiring the cryptocurrency for national reserves. Market optimism surrounding cryptocurrency policies under US President Donald Trump has contributed to bitcoin’s rising value.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
