El Salvador approves new Bitcoin law for IMF compliance

El Salvador's Congress has swiftly enacted new legislation to amend its Bitcoin (CRYPTO:BTC) laws in response to requirements set by the International Monetary Fund.

The bill was approved just minutes after President Nayib Bukele submitted it, indicating a quick legislative process.

This development follows a $1.4 billion loan agreement with the IMF, which necessitated a reduction in the government's involvement with Bitcoin.

Under the new law, businesses are no longer mandated to accept Bitcoin as payment, making its use voluntary for private sector merchants.

The reform passed with significant support, garnering 55 votes in favor and only two against.

Ruling party lawmaker Elisa Rosales stated that the amendment was essential to ensure Bitcoin’s “permanence as legal tender” while also facilitating its practical implementation.

Despite these regulatory changes, El Salvador has continued to purchase Bitcoin, recently adding 12 BTC to its strategic reserves.

An official from the National Bitcoin Office indicated that the country plans to intensify its Bitcoin buying efforts in 2025.

Currently, El Salvador holds a total of 6,049 BTC, valued at approximately $633 million, which reflects a profit of 127% based on an average purchase price of $46,000 per Bitcoin.

El Salvador made headlines in September 2021 by becoming the first country to adopt Bitcoin as legal tender.

At the time of reporting, the Bitcoin (BTC) price was $105,050.