El Salvador’s Legislature Revises Bitcoin Regulations to Comply with IMF Agreement on Cryptocurrency Exposure

El Salvador’s Congress has promptly approved modifications to its Bitcoin regulations, in accordance with an agreement reached with the International Monetary Fund (IMF) aimed at reducing its cryptocurrency exposure.

This legislative adjustment is part of the nation’s commitment to the conditions outlined in its $1.4 billion loan agreement with the IMF.

As reported by Reuters, lawmakers passed the bill just minutes after President Nayib Bukele submitted it to the Legislative Assembly on January 29.

El Salvador Eliminates Bitcoin Requirement for Businesses

The reform, which received 55 votes in favor and only two against, removes the legal obligation for businesses to accept Bitcoin as payment, rendering its use optional for private merchants.

Elisa Rosales, a member of the ruling party, highlighted that the amendment guarantees Bitcoin’s “permanence as legal tender” while enhancing its practical application.

Despite the policy shift driven by the IMF, El Salvador continues to expand its Bitcoin reserves, recently acquiring 12 BTC for its national holdings.

An official from the nation’s Bitcoin Office informed Cointelegraph last month that the government plans to persist in its Bitcoin purchases, with a more aggressive strategy anticipated for 2025.

El Salvador’s Congress has swiftly passed legislation to amend its Bitcoin laws to comply with an agreement with the IMF to manage its cryptocurrency exposure. The IMF requested the Bukele administration to lessen its engagement with Bitcoin and make Bitcoin optional and voluntary for…

— Wu Blockchain (@WuBlockchain) January 30, 2025

El Salvador currently possesses 6,049 BTC, valued at approximately $633 million, with an average acquisition cost of $46,000 per Bitcoin. The portfolio has reportedly generated a 127% profit.

In 2021, El Salvador made history by becoming the first nation to recognize Bitcoin as legal tender.

On the same day that Congress approved 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 valued at $150,000 at his residence.

Notably, El Salvador’s National Bitcoin Office Director, Stacy Herbert, indicated in a December 19 social media post that the country might accelerate its Bitcoin acquisitions.

The government has also clarified that it has no intention of selling its holdings, reaffirming that Bitcoin remains central to its economic strategy.

The Chivo wallet, El Salvador’s official Bitcoin wallet, is expected to be sold or phased out, with private-sector wallets anticipated to take its place.

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, reflecting a growing trend among U.S. states to diversify their treasuries with cryptocurrency.

Previously, Ohio proposed incorporating Bitcoin into its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.

Similarly, on December 12, 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which suggests that the state comptroller maintain Bitcoin as a reserve asset for at least five years.

Pennsylvania took a similar initiative 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 serve as a hedge against economic uncertainty.

Additionally, corporate Bitcoin holders such as MicroStrategy and Metaplanet have increased their Bitcoin holdings.

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