El Salvador Drops Bitcoin Mandate for Businesses
El Salvador’s Congress has overwhelmingly approved a bill revising the country’s Bitcoin law, making its use optional for private businesses instead of mandatory.
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The reform is tied to the country’s $1.4 billion loan agreement with the International Monetary Fund (IMF) and was introduced by President Nayib Bukele. With the ruling party’s majority, the bill passed in less than an hour.
Before the vote, ruling party lawmaker Elisa Rosales emphasized that the change does not signal a move away from Bitcoin but rather aims to encourage its long-term and practical adoption in the economy. Bitcoin remains legal tender alongside the US dollar.
Only two legislators voted against the measure.
“We have achieved not only the greatest rebrand in history, but we are now an actual case study for a winning country strategy,” an El Salvador Bitcoin Office spokesperson stated, commenting on the country’s adoption of cryptocurrency.
In 2021, El Salvador made history as the first country to recognize Bitcoin as legal tender. The decision sparked a global debate—while the crypto community hailed it as a bold step forward, institutions like the IMF and the World Bank raised concerns over potential economic risks.
Beyond legalization, the Salvadoran government has steadily increased its national Bitcoin reserves. According to the latest figures, the country holds 6,049 BTC (worth approximately $633 million at current market prices) and continues to build infrastructure for broader adoption. Officials have also reaffirmed their commitment to holding and accumulating BTC, with no plans to change course.
Related: Crypto Regulations in El Salvador
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