El Salvador Amends Bitcoin Law to Align with IMF Agreement

El Salvador’s government has amended its Bitcoin regulations as part of its $1.4 billion loan deal with the International Monetary Fund (IMF). The country’s Congress swiftly approved the reforms, signaling a shift in its Bitcoin policies to meet the agreement’s terms.

Key Changes in the Bitcoin Law

• Businesses are no longer required to accept Bitcoin as payment, making its use entirely voluntary.
• Tax payments must now be made in U.S. dollars instead of Bitcoin.
• Government-led crypto projects, including the state-backed Chivo wallet, could be scaled back.
• Bitcoin remains legal tender, ensuring its continued role in the economy.

Ruling party lawmaker Elisa Rosales stated that the changes would help guarantee Bitcoin’s “permanence as legal tender” while improving its “practical implementation.”

Bitcoin Accumulation Strategy Continues

Despite these regulatory adjustments, El Salvador has reaffirmed its commitment to Bitcoin. The country currently holds 6,049 BTC, valued at approximately $633 million, with an unrealized profit of 127%, according to the National Bitcoin Office.

Following the IMF deal, El Salvador ramped up its Bitcoin purchases, moving beyond its “1 Bitcoin a day” strategy. On January 21, the country added 12 BTC, reinforcing its plan to accumulate at an “accelerated pace,” according to National Bitcoin Office director Stacy Herbert.

Crypto-Focused Initiatives in El Salvador

Since adopting Bitcoin as legal tender in 2021, El Salvador has launched several Bitcoin-related projects:

• Volcano Energy: A renewable energy-powered Bitcoin mining project.
• Volcano Bonds: Bitcoin-backed bonds to fund infrastructure and Bitcoin City.
• Bitcoin ATMs: Over 200 machines installed, making Bitcoin transactions more accessible.

Additionally, Tether recently announced plans to relocate its operations to El Salvador after securing a Digital Asset Service Provider license through Bitfinex Derivatives.

These developments highlight El Salvador’s evolving approach to Bitcoin, balancing regulatory compliance with its long-term vision for crypto adoption.