El Salvador Revises Bitcoin Law to Secure IMF Loan, Keeping Crypto Voluntary for Businesses

• El Salvador amends Bitcoin law to meet IMF conditions, making Bitcoin acceptance voluntary for businesses.
• Despite IMF pressure, Bukele sticks to the Bitcoin strategy, with plans to keep buying Bitcoin for reserves.
• El Salvador’s swift law change shows strong political control and commitment to securing IMF loans while supporting Bitcoin.

The Congress voted for an amended bill to make partial changes in El Salvador’s Bitcoin law, a condition the IMF has sought in their $1.4 billion loan deal; according to President Nayib Bukele’s bill, companies are not compelled or obligated to receive Bitcoin.

The modification demonstrated how urgent the administration is to meet the IMF’s demands. With this modification, Bitcoin remains legal tender in El Salvador, but private organizations are only encouraged to accept it voluntarily.

IMF Agreement Influences Bitcoin Policy

Bitcoin gained international notice when El Salvador proclaimed it legal tender for the first time in 2021. The IMF eventually pushed the nation to relax its Bitcoin regulations, though. The lender warned about financial risks and pressed for a more cautious approach. Consequently, this amendment clarifies that businesses are not obligated to accept Bitcoin, reducing crypto-related concerns.

Moreover, the reform passed easily in Congress, with 55 votes in favor and only two against. The ruling New Ideas Party, led by Bukele, demonstrated full control over the legislative process. This rapid approval reflects El Salvador’s commitment to securing IMF funding while maintaining Bitcoin’s status.

Bukele’s Bitcoin Strategy Remains Strong

Despite the IMF’s concerns, Bukele continues to support the adoption of Bitcoin. His administration recently announced plans to keep purchasing Bitcoin for national reserves. Additionally, the President has mocked critics like U.S. Senator Bob Menendez, who opposed El Salvador’s adoption of Bitcoin. Menendez, previously vocal about corruption concerns, was recently sentenced in a bribery case. Bukele used this opportunity to highlight contradictions in anti-Bitcoin arguments.

Furthermore, Bitcoin’s global resurgence has reinforced Bukele’s stance. The cryptocurrency’s price surged following Donald Trump’s election victory, as many expect favorable crypto policies from Washington. This trend could strengthen El Salvador’s Bitcoin holdings, supporting Bukele’s financial strategy.