El Salvador Removes Mandatory Bitcoin Payments to Meet IMF's Loan Requirements

Businesses can now choose whether to accept Bitcoin instead of being required to. El Salvador has made a big change to its Bitcoin laws to follow the rules set by the International Monetary Fund (IMF).

El Salvador has made a major change to its Bitcoin laws, following the country's adoption of the cryptocurrency as legal tender.

Businesses in El Salvador were previously required by law to accept Bitcoin as a form of payment. However, this rule has now been removed, allowing businesses to choose whether or not to accept the cryptocurrency.

The change comes as part of El Salvador's $1.4 billion loan agreement with the International Monetary Fund (IMF), which asked the country to reduce its involvement with Bitcoin.

El Salvador has made a big push towards crypto adoption, making it the first country in the world to adopt Bitcoin as a legal tender and putting the country on the crypto map.

Despite the country's enthusiasm for Bitcoin, the IMF has expressed concerns over the country's adoption of the cryptocurrency, citing risks to consumer protection, financial stability, and the integrity of the monetary system.

The IMF has asked the country to remove the legal tender status of Bitcoin and to dissolve the state-owned Bitcoin wallet, among other requests.

El Salvador has not yet agreed to these requests, but the recent changes to the Bitcoin law appear to be a move towards meeting the IMF's demands.

Even with these changes, El Salvador is still showing its support for Bitcoin.

The country recently bought 12 more Bitcoins, adding to its national reserves. According to Coinpedia news report, El Salvador currently has 6,022 Bitcoins, which are valued at about $617 million.

With an average purchase price of $43,357 per Bitcoin, the country has made a 133% profit on its investment.

A spokesperson from the El Salvador Bitcoin Office said the country plans to keep buying Bitcoin and will “intensify” its efforts in 2025.

They also called El Salvador a “case study for a winning country strategy,” showing how the country has transformed its image through its bold move with Bitcoin.

El Salvador made history in 2021 by becoming the first nation to adopt Bitcoin as legal tender. While the journey has had its ups and downs, the government continues to adapt its policies while maintaining its Bitcoin strategy.

With this new law showing a compromise with international financial institutions, the government's commitment to Bitcoin remains strong.