The revision aligns with an agreement between the government and an international lender, ensuring that the acceptance of bitcoin remains voluntary.
The legislature, controlled by Bukele’s New Ideas Party, moved quickly to enact the change. In 2021, El Salvador became the first nation to adopt bitcoin as legal tender alongside the USD a policy that drew global attention and positioned Bukele as a high-profile proponent of the cryptocurrency.
In December, El Salvador reached a USD 1.4 billion loan agreement with the International Monetary Fund (IMF), which encouraged the government to reduce its bitcoin-related commitments. As part of the deal, the IMF recommended making bitcoin acceptance optional for businesses, a condition that was incorporated into the newly passed legislation.
Ahead of the vote, ruling party lawmaker Elisa Rosales described the amendment as a measure to ensure bitcoin's continued status as legal tender while improving its practical application. The reform passed with 55 votes in favour and two against.
Meanwhile, bitcoin's value has surged to record levels, driven in part by expectations that US President Donald Trump’s election victory and anticipated policy shifts in Washington will be favourable to cryptocurrency. Despite scaling back its initial approach, Bukele’s administration has signalled that it will continue acquiring bitcoin to add to its national reserves.
In January 2025, despite an earlier agreement with the International Monetary Fund (IMF) to reduce some of its cryptocurrency-related policies, El Salvador purchased additional bitcoin.
On 19 January, the country’s National Bitcoin Office announced the acquisition of 11 Bitcoin, valued at approximately 1 million USD. The following day, on 20 January, another Bitcoin was added to its reserve, costing around 106,000 USD. With these purchases, El Salvador's total Bitcoin holdings now amount to 6,044 BTC, valued at nearly 610 million USD at the time of writing.
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