El Salvador’s Congress moved swiftly on Wednesday to approve a bill modifying the nation’s Bitcoin law, reinforcing the cryptocurrency’s legal status while adjusting its implementation to meet conditions set by a recent deal with the International Monetary Fund (IMF).

According to a report from Reuters, the bill, which was sent to lawmakers just minutes before the vote, was championed by President Nayib Bukele’s administration. With Bukele’s New Ideas Party holding a strong majority in Congress, the amendment passed effortlessly, securing 55 votes in favor and only two against.‍

From Mandatory to Voluntary

The most significant change introduced by the reform is making Bitcoin acceptance voluntary for businesses, a move aimed at addressing concerns raised by the IMF. 

Previously, El Salvador’s landmark 2021 Bitcoin adoption law required businesses to accept BTC for goods and services, alongside the U.S. dollar, which has been the country’s official currency for over two decades.

While the original Bitcoin law garnered global attention, turning Bukele into a figurehead for Bitcoin adoption, it also drew scrutiny from international financial institutions. The IMF, which finalized a $1.4 billion loan agreement with El Salvador in December, had urged the country to scale back its exposure to Bitcoin and introduce policies that make its acceptance optional rather than compulsory.‍

Ensuring Bitcoin’s “Permanence”

Ahead of the vote, ruling party lawmaker Elisa Rosales emphasized that the reform was essential to guarantee Bitcoin’s continued presence as legal tender while making its use more practical within the Salvadoran economy. The measure, she argued, preserves the government’s pro-crypto stance while ensuring smoother financial integration for businesses and citizens.

Despite the IMF’s influence on policy adjustments, El Salvador remains committed to its Bitcoin strategy. The government has recently reaffirmed its intention to continue accumulating Bitcoin as part of its national reserves, signaling a long-term bet on the digital asset. As of the latest data, the Central American nation holds approximately 6,049.18 BTC.‍

Bitcoin’s Surge and Global Factors

The timing of the amendment aligns with Bitcoin’s recent price surge, fueled in part by expectations of friendlier crypto policies under the incoming US administration. Donald Trump’s return to the White House has been viewed by many in the crypto space as a potential catalyst for regulatory shifts that could favor digital assets.

Bitcoin’s price recently skyrocketed past $100,000, setting new records and further validating Bukele’s controversial investment strategy. While critics have long questioned El Salvador’s Bitcoin experiment, the country’s leadership appears resolute in maintaining its digital asset holdings while adapting policies to meet international financial obligations.