El Salvador’s Congress has approved a key amendment to its Bitcoin policy, making its acceptance by businesses voluntary while maintaining its status as legal tender. The move, championed by President Nayib Bukele, aligns with conditions set by the International Monetary Fund (IMF) under a $1.4 billion loan agreement.
Since adopting Bitcoin as an official currency in 2021, El Salvador has faced scrutiny from global financial institutions, particularly over concerns about the cryptocurrency’s volatility. The IMF has consistently urged the country to limit its exposure, recommending that Bitcoin be optional rather than a mandatory form of payment.
The amendment, passed with 55 votes in favor and two against, reflects a shift towards a more balanced approach. Lawmaker Elisa Rosales emphasized that while Bitcoin will remain a key part of El Salvador’s financial landscape, businesses will no longer be required to accept it, allowing greater flexibility in its adoption.
Bukele’s administration remains committed to Bitcoin, with plans to continue accumulating the asset in national reserves. The country has already made significant investments in Bitcoin and launched Bitcoin-backed bonds to attract foreign investors.
This policy revision comes amid Bitcoin’s recent price surge, fueled by increasing institutional adoption and the election of U.S. President Donald Trump, who is expected to implement more crypto-friendly policies.
With this legislative change, El Salvador aims to position itself as a leader in digital asset adoption while ensuring financial stability under its IMF-backed economic strategy.
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