El Salvador’s Congress has amended its bitcoin law, making acceptance voluntary for businesses, following guidance from the IMF linked to a $1.4 billion loan. This change, proposed by President Nayib Bukele, resulted in rapid legislative approval to ensure a manageable implementation of bitcoin as legal tender, while continuing to bolster the government’s cryptocurrency reserves.
In a decisive move, El Salvador’s Congress reformed its bitcoin law, following an agreement with the IMF, now making adoption of bitcoin voluntary for businesses. This swift shift was championed by President Nayib Bukele, with lawmakers from his New Ideas Party facilitating the rapid vote that took merely minutes.
Initially declared legal tender in 2021 along with the U.S. dollar, the bitcoin initiative elevated Bukele’s profile as a pro-cryptocurrency leader. However, to secure a $1.4 billion loan from the IMF, finalized in December, the Salvadoran government had to heed its advice to limit exposure to bitcoin.
The IMF specifically recommended that bitcoin acceptance be an optional choice for the private sector, a central tenet of the newly established law. Lawmaker Elisa Rosales backed the amendment, emphasizing it would bolster bitcoin’s legal tender status while ensuring a smoother implementation. The bill passed with resounding support, totaling 55 votes in affirmation and a mere two opposed.
Despite the changes, Bukele’s administration stays fervently in favor of bitcoin, announcing intentions to keep purchasing the cryptocurrency for national reserves. Increasing market confidence resulting from optimistic cryptocurrency policies set during Donald Trump’s presidency has further propelled bitcoin’s market value upward.
El Salvador’s recent amendment to its bitcoin law marks a significant pivot towards voluntary acceptance of cryptocurrency by businesses. This decision was primarily motivated by an IMF loan agreement that necessitated limits on the government’s involvement with bitcoin. Even with the amendment, President Bukele’s administration remains committed to bolstering the country’s cryptocurrency reserves. Overall, the reform signals a balanced approach to integrating bitcoin while heedfully managing international financial relationships.
Original Source: dig.watch
