TLDR
El Salvador’s Congress rapidly approved Bitcoin policy reforms to secure a $1.4 billion IMF loan agreement, making Bitcoin acceptance voluntary for businesses while maintaining its legal tender status
The country holds 6,049 BTC (worth ~$633 million) with a 127% unrealized profit and continues to accumulate Bitcoin, recently purchasing 12 BTC on January 21
Businesses are no longer required to accept Bitcoin as payment, and tax payments are now restricted to US dollars, though Bitcoin remains legal tender
Tether Group announced plans to relocate operations to El Salvador after Bitfinex Derivatives secured a Digital Asset Service Provider license
President Bukele mocked former Bitcoin critic Senator Bob Menendez following his bribery conviction, highlighting the irony of Menendez’s past claims about Bitcoin enabling corruption
El Salvador has adjusted its Bitcoin policies to comply with International Monetary Fund (IMF) requirements, securing a $1.4 billion loan agreement while keeping its commitment to cryptocurrency. The country’s Congress, controlled by President Nayib Bukele’s New Ideas Party, approved reforms within minutes of receiving them.
The new amendments remove the requirement for businesses to accept Bitcoin as payment, making its use voluntary across the private sector. Tax payments will now be restricted to U.S. dollars, addressing one of the IMF’s main concerns about the country’s crypto exposure.
Elisa Rosales, a lawmaker from the ruling party, explained that the reforms passed with 55 votes in favor and only two against. The changes aim to ensure Bitcoin’s continued status as legal tender while making its implementation more practical for everyday use.
Despite these modifications, El Salvador maintains its position as a leading crypto-friendly nation. The country currently holds 6,049 Bitcoin, valued at approximately $633 million, representing an unrealized profit of 127% on its investment.
The government has shown no signs of slowing its Bitcoin accumulation strategy. Following the IMF agreement, El Salvador purchased 11 Bitcoin valued at over $1 million, deviating from its previous “1 Bitcoin a day” program. The country added another 12 Bitcoin on January 21, 2025.
El Salvador adds another 11 BTC to our Strategic Bitcoin Reserve!
🇸🇻🚀 https://t.co/6NnNIdJtY5
— The Bitcoin Office (@bitcoinofficesv) January 20, 2025
El Salvador’s commitment to cryptocurrency infrastructure remains strong. The government has installed more than 200 Bitcoin ATMs throughout the country, making it one of the most accessible regions for Bitcoin transactions globally.
The nation continues to develop innovative crypto projects. Among these is Volcano Energy, a Bitcoin mining operation that harnesses renewable energy from volcanic sources. Another notable initiative is the Volcano Bonds program, which aims to fund infrastructure projects and develop Bitcoin City, a planned tax-free crypto hub powered by geothermal energy.
In a move that reinforces El Salvador’s position as a crypto hub, Tether Group announced plans to relocate its entire operations to the country. This decision followed Bitfinex Derivatives, its Seychelles-based affiliate, securing a Digital Asset Service Provider license in El Salvador.
The relationship between El Salvador and traditional financial institutions has been complex. The country had previously faced challenges accessing conventional financial markets due to its high debt and unconventional Bitcoin experiment, making the IMF deal a crucial development.
President Bukele has maintained his characteristic bold approach to cryptocurrency advocacy. He recently responded to news about former Senator Bob Menendez’s bribery conviction by pointing out the irony of Menendez’s past criticism of El Salvador’s Bitcoin adoption.
The government’s Bitcoin strategy has evolved since September 6, 2021, when El Salvador became the first nation to accept Bitcoin as legal tender. While some initial policies have been modified, the core commitment to cryptocurrency integration remains intact.
Under the new framework, the government plans to scale back certain state-led crypto initiatives, including adjustments to the state-backed Chivo wallet program. However, these changes appear designed to streamline rather than diminish the country’s overall crypto strategy.
The National Bitcoin Office continues to play an active role in managing the country’s cryptocurrency strategy. Director Stacy Herbert has indicated plans to accumulate Bitcoin at an “accelerated pace,” suggesting that the recent policy amendments have not altered the government’s long-term vision.
El Salvador’s Congress, dominated by Bukele’s party, has demonstrated its ability to quickly implement changes to support the government’s economic agenda. The swift passage of the recent reforms highlights the administration’s effective control over legislative processes.
The modifications to El Salvador’s Bitcoin policies represent a balanced approach between meeting international financial requirements and maintaining the country’s pioneering role in cryptocurrency adoption. The changes preserve Bitcoin’s legal tender status while addressing concerns raised by global financial institutions.
