Last updated:
Author
Ruholamin Haqshanas
Author
Ruholamin Haqshanas
Share
Why Trust Cryptonews
Ad Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
El Salvador’s Congress has swiftly approved amendments to its Bitcoin laws, aligning with a deal struck with the International Monetary Fund (IMF) to scale back its crypto exposure.
The legislative change comes as part of the country’s commitment to conditions set in its $1.4 billion loan agreement with the IMF.
According to Reuters, lawmakers passed the bill just minutes after President Nayib Bukele sent it to the Legislative Assembly on Jan. 29.
El Salvador Drops Bitcoin Mandate for Businesses
The reform, approved by 55 votes in favor and only two against, eliminates the legal requirement for businesses to accept Bitcoin as payment, making its use optional for private merchants.
Elisa Rosales, a ruling party lawmaker, emphasized that the amendment ensures Bitcoin’s “permanence as legal tender” while refining its practical implementation.
Despite the IMF-driven policy shift, El Salvador continues to expand its Bitcoin holdings, recently acquiring 12 BTC for its national reserves.
An official from the country’s Bitcoin Office told Cointelegraph last month that the government intends to continue purchasing Bitcoin, with an intensified strategy planned for 2025.
El Salvador currently holds 6,049 BTC, valued at approximately $633 million, with an average acquisition price of $46,000 per Bitcoin. The portfolio has reportedly yielded a 127% profit.
El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender.
Meanwhile, on the same day Congress passed the amendment, former U.S. Senator Bob Menendez—who had opposed El Salvador’s Bitcoin adoption—was sentenced to 11 years in prison for bribery involving gold bars and cash, according to the Associated Press.
FBI agents reportedly discovered $480,000 in cash and gold bars worth $150,000 at his home.
Notably, El Salvador’s National Bitcoin Office Director, Stacy Herbert, indicated in a Dec. 19 social media post that the country could accelerate its Bitcoin acquisitions.
The government has also clarified it has no plans to sell its holdings, reaffirming that Bitcoin remains central to its economic strategy.
The Chivo wallet, El Salvador’s official Bitcoin wallet, will reportedly be sold or phased out, with private-sector wallets expected to fill the gap.
New Hampshire and North Dakota Latest U.S. States to Propose Bitcoin Reserves
New Hampshire and North Dakota have introduced legislation to establish strategic Bitcoin reserves, marking a growing trend among U.S. states to diversify their treasuries with cryptocurrency.
Previously, Ohio proposed adding Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.
Likewise, on 12 December 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.
Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.
Furthermore, corporate Bitcoin holders like MicroStrategy and Metaplanet have expanded their Bitcoin holdings.
