The Salvadoran Congress has passed a law revising the country’s Bitcoin adoption strategy in response to the requirements of the International Monetary Fund (IMF). This reform comes as part of a $1.4 billion financing agreement signed with the institution to support the national economy and address its payment deficit.
Transparency, regulation, and oversight of digital assets will be strengthened to preserve financial stability, consumer and investor protection, and financial integrity.
One of the major changes introduced by this law concerns the acceptance of Bitcoin by Salvadoran businesses. While the initial regulations required merchants to accept the cryptocurrency as a means of payment, the new legislation now makes it optional. This measure aims to alleviate concerns from international financial institutions while easing the integration of Bitcoin into the local economy.
Since El Salvador became the first country in the world to recognize Bitcoin as legal tender in 2021, the results have been mixed. While the government of Nayib Bukele has promoted the cryptocurrency as a tool for financial inclusion and a strategic reserve, the population and businesses have not massively adopted this alternative. The country currently holds 6,049 BTC, valued at approximately $636 million after an impressive unrealized profit, but its everyday use remains limited for now.
The IMF, which has long expressed reservations about El Salvador’s pro-Bitcoin policy, has demanded adjustments as part of its financing program. The agreement includes strengthening transparency, regulation, and supervision of digital assets to safeguard financial stability and consumers. This development marks a turning point for the Bukele government, which is compelled to soften its approach to benefit from international financial support.
