El Salvador Abandons BTC Payment Requirement as Part of $1.4B IMF Loan Agreement

The Salvadoran government has urgently passed a major amendment to its bitcoin legislation, abandoning the requirement for companies to accept BTC as a means

The Salvadoran government has swiftly passed a major amendment to its bitcoin legislation, abandoning the requirement for companies to accept BTC as a means of payment. This reform comes as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF).

The Legislative Assembly of El Salvador adopted the reform by an overwhelming majority of 55 votes to 2, shortly after its presentation by President Nayib Bukele. The new law frees private companies from the obligation to accept bitcoin as a means of payment.

This amendment directly responds to the conditions set by the IMF as part of a $1.4 billion loan agreement concluded in December. The institution required that the Bukele government limit its exposure to bitcoin and make its use optional for merchants.

For Elisa Rosales, a deputy from the ruling party, this reform aims to sustain the legal status of bitcoin while easing its framework of application. “This reform seeks to maintain bitcoin as legal tender in the country, but at the same time, it aims to adapt to the requirements that are being made by international institutions. In this way, we ensure that bitcoin continues to circulate in the Salvadoran economy,” she stated.

While El Salvador adapts to international requirements, it does not abandon its bitcoin strategy: the country has just added 12 additional BTC to its national reserves.

According to information from the Bitcoin Office of El Salvador, the country currently holds 6,049 BTC, which is valued at around $633 million. This reserve shows outstanding performance with a profit of 127% on an average purchase price of $46,000.

The Bitcoin Office has confirmed its intention to intensify its acquisitions in 2025. “Our national strategy has proven successful and now serves as a model. We are the first country to adopt Bitcoin and show the world how it can be done. Now, many countries are studying our experience and preparing to follow in our footsteps,” said a spokesperson for the Bitcoin Office.

Ironically, Bob Menendez, the former U.S. senator who had strongly opposed El Salvador's adoption of bitcoin, has been sentenced to 11 years in prison for corruption. The FBI seized $480,000 in cash and $150,000 in gold bars from his home.

In summary, the first country to adopt bitcoin as legal tender in 2021, El Salvador is demonstrating its ability to adapt its policy while maintaining its role as a pioneer in crypto adoption.