El Salvador Passes New Bitcoin Reform to Comply with IMF Agreement

On Wednesday, El Salvador’s Congress quickly passed a bill from President Nayib Bukele to amend their Bitcoin law and comply with a loan deal with an international lender. The Congress is primarily made up of members from Bukele’s New Ideas Party.

In 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender alongside the US dollar. This decision gained global attention and elevated Bukele to a prominent supporter of the cryptocurrency.

However, after striking a multi-billion dollar loan deal with the International Monetary Fund in December, the government had to scale back their embrace of Bitcoin at the IMF’s urging.

As a result, the quickly-passed law now makes it voluntary for the private sector to accept Bitcoin, while still guaranteeing its status as legal tender.

Prior to the vote, ruling party lawmaker Elisa Rosales stated the reform was necessary to ensure the continued use of Bitcoin, while also making it easier to implement practically.