The post El Salvador Modifies Bitcoin Laws Amid IMF Deal, Making BTC Payments Optional for Businesses appeared on BitcoinEthereumNews.com.

El Salvador has amended its Bitcoin regulations, impacting its previous mandate related to cryptocurrency, in a significant shift aligning with IMF requirements. This recent legislative change aims to lessen the country’s commitment to Bitcoin amidst ongoing negotiations with international financial institutions, indicating a strategic pivot in economic policy. “This amendment is crucial for fostering Bitcoin’s ‘permanence as legal tender’ while ensuring its practical use in the economy,” stated Elisa Rosales, a ruling party lawmaker. El Salvador amends its Bitcoin laws to comply with IMF demands, making Bitcoin optional for businesses and reflecting a shift in the country’s crypto approach. El Salvador’s Strategic Shift in Bitcoin Legislation The recent legislative decision by El Salvador’s Congress to modify its Bitcoin laws marks a pivotal moment in the country’s economic strategy. On January 29, it was reported that the assembly swiftly approved changes that allow businesses to make Bitcoin (BTC) payment optional, reversing the previous legal requirement that mandated acceptance. This move aligns with the conditions set forth by the International Monetary Fund (IMF) as part of a $1.4 billion loan agreement forged in December. The Context of the Legislative Change This modification comes at a crucial time as the Bukele administration seeks to balance its innovative approach towards cryptocurrency while addressing international financial expectations. With a vote of 55 in favor and 2 against, the legislative reform was enacted promptly following its introduction by President Nayib Bukele. The ruling party emphasized that this change was necessary to ensure that Bitcoin remains a viable currency option without imposing mandatory restrictions on businesses. Future Prospects for Bitcoin in El Salvador Despite this legislative adjustment, El Salvador remains committed to its Bitcoin strategy, as evidenced by its continued acquisition of Bitcoin. The country has recently added 12 BTC to its reserves, bringing its total holdings…

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Filed under: News - @ January 30, 2025 5:23 am