El Salvador’s Congress has recently enacted changes to its Bitcoin legislation with remarkable speed, aligning with an agreement reached with the International Monetary Fund (IMF) aimed at reducing the country’s engagement with cryptocurrency. The Legislative Assembly ratified this bill shortly after President Nayib Bukele submitted it, as reported on January 29.
The background to this legislative shift lies in a $1.4 billion loan agreement established between El Salvador and the IMF in December, which stipulated that the government should minimize its reliance on Bitcoin and allow private sector merchants the discretion to accept the cryptocurrency voluntarily rather than mandatorily. The amendment to the law passed with a decisive vote of 55 in favor and just two opposing, reversing a previous stipulation that businesses must accept Bitcoin as a form of payment.
Proponents of the modification, including members of Bukele’s ruling party, emphasized the necessity of ensuring Bitcoin ’s status as legal tender while also enhancing its practical use across the economy. Amid these developments, El Salvador continues to acquire Bitcoin , recently adding 12 BTC to its strategic reserves. Officials from the country’s Bitcoin Office have indicated a commitment to further purchases, with plans to escalate this strategy in 2025.
As it stands, El Salvador has amassed a total of 6,049 BTC, valued at approximately $633 million. This investment has yielded substantial returns, with a 127% profit based on an average purchase price of $46,000 per Bitcoin . Notably, El Salvador made history in 2021 by becoming the first nation worldwide to adopt Bitcoin as legal tender.
In a related event, former U.S. Senator Bob Menendez, who opposed El Salvador’s Bitcoin adoption, has been sentenced to 11 years in prison on corruption charges linked to bribery involving gold and cash. The FBI’s investigation revealed substantial cash and valuable assets in his possession, highlighting a significant legal outcome amidst El Salvador’s evolving financial landscape.
