El Salvador Revises Bitcoin Law for IMF Deal

Lawmakers in El Salvador have adjusted the country’s Bitcoin policy to align with the conditions of a new deal with the International Monetary Fund (IMF). 

El Salvador secured a $1.4 billion loan from the IMF. However, the country’s leadership agreed to scale back its involvement with Bitcoin.

Bitcoin Adoption Remains Strong

Although BTC remains legal tender in El Salvador, the new law no longer mandates businesses to accept Bitcoin. Private merchants can opt whether or not to accept BTC.

According to reports , the focus of the amendment is to make the use of Bitcoin more practical. The policy change does not affect El Salvador’s broader involvement in BTC. The Central American nation has continued to build up its BTC investment. Its recent investment in the asset added 12 BTC to its reserves. Top officials within the nation’s government revealed further plans to invest in Bitcoin.

JUST IN: 🇸🇻 El Salvador secures $3.5 billion IMF financing package after agreeing to make accepting #Bitcoin voluntary and unwind its Chivo wallet. pic.twitter.com/54l9kpDNQL

— Bitcoin Magazine (@BitcoinMagazine) December 18, 2024

Interestingly, El Salvador’s current BTC holding is valued at around $633 million. The country has made over 127% profit on its BTC investment.

Growing institutional interest in BTC

Meanwhile, the Czech National Bank is reportedly considering holding BTC in its reserves. The bank’s governor, Ales Michl, explained that nothing was concrete yet. However, serious considerations were going on.

Interestingly, the Czech National Bank is not the only organization wielding an interest in Bitcoin. Several financial organizations and governments are moving to add Bitcoin to their reserves. Illinois recently proposed a 5-year strategic Bitcoin reserve.

ILLINOIS WANTS TO ADD BITCOIN TO THE STATE’S PORTFOLIO

State Rep. John Cabello just pushed a bill to start a Strategic Bitcoin Reserve.

If the bill passes, Illinois could hold Bitcoin as a state asset—basically buying Bitcoin now and hoping its value spikes.

It’s a big move… pic.twitter.com/DoNmRic2hT

— Mario Nawfal’s Roundtable (@RoundtableSpace) January 29, 2025

Furthermore, US states such as Texas, Dakota, and New Hampshire have expressed interest in a BTC reserve. Additionally, David Sacks, who leads the White House’s crypto policy, recently confirmed President Trump’s interest in a BTC reserve.

NEW: Trump’s Bitcoin and Crypto Czar David Sacks says the administration is exploring a federal Strategic #Bitcoin Reserve. 👀 pic.twitter.com/M2cB0JOlYu

— Simply Bitcoin (@SimplyBitcoinTV) January 30, 2025

While speaking to FOX Business, Sacks noted that the president had instructed officials to explore the possibility of a Bitcoin reserve. While there’s no timeline for launching a BTC reserve, some users believe President Trump could implement it within his first year in office.

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