El Salvador’s Congress has swiftly approved a proposal from President Nayib Bukele to reform the country’s Bitcoin law, just minutes after receiving it. The move follows El Salvador’s recent $1.4 billion loan agreement with the International Monetary Fund (IMF).
El Salvador Introduces Bitcoin Reforms After IMF Deal
The reform, ed with 55 votes in favor and only two against, makes Bitcoin adoption voluntary to align with IMF conditions. The ruling majority, led by Bukele’s New Ideas Party, ed the bill.
El Salvador made history in 2021 as the first country to adopt Bitcoin as legal tender alongside the U.S. dollar. The decision bolstered Bukele’s reputation as a forward-thinking leader and one of Bitcoin’s most vocal advocates. The country has also maintained a Bitcoin accumulation strategy, now holding 6,049 BTC worth approximately $635.56 million.
The IMF deal mandates limitations on the government’s Bitcoin involvement, stating, “For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined.” However, on December 20, Bukele’s government dismissed speculation that the country would scale back its Bitcoin strategy. Officials reaffirmed their commitment to continued Bitcoin purchases at an accelerated pace and also became the first nation with a Bitcoin National Reserve.
Ruling party lawmaker Elisa Rosales emphasized that the reform ensures Bitcoin’s permanence as legal tender and s its “practical implementation.”
