The El Salvador Legislative Assembly approved renovations in the country's Bitcoin Law, changing key aspects of its applicability.

Bitcoin remains a recognized asset in El Salvador, although this development effectively weakens its official classification as a legal currency.

Main amendments to the Bitcoin Law in El Salvador

With 55 votes in favor, legislators eliminated the requirement for economic agents to accept Bitcoin (BTC). They also removed the role of the state to provide infrastructure for its use and deleted references to Bitcoin as a legal currency.

With 55 votes in favor, we reform the Bitcoin Law to improve its applicability, announced The Legislative Assembly of El Salvador.

Reforms eliminate the mandatory acceptance of Bitcoin, making their use voluntary for private sector participants. This marks a significant change in relation to the original law, which required companies to accept Bitcoin as a payment method. In addition, the state will no longer facilitate bitcoin transactions through mechanisms such as Chivo Wallet, the government's official portfolio.

… Only individuals or legal entities, with totally private participation, can accept Bitcoin as a form of payment when they are offered, it saysthe report, citing Article 7.

This implied in the revocation of Articles 4, 8 and 9, which allowed Bitcoin tax payments. These clauses also required the government to provide infrastructure for the conversion from Bitcoin to dollar.

The changes are aligned with an agreement with the International Monetary Fund (IMF) for a $ 1.4 billion loan designed to strengthen fiscal sustainability. Government debt obligations must now be settled in the currency where they were originally hired, further reducing Bitcoin's role in national financial issues.

In fact, the IMF loan agreement with El Salvador played a crucial role in the formation of these reforms. In December 2023, the Salvadoran government was committed to reducing the mandatory use of Bitcoin and decreasing its involvement in Bitcoin-related infrastructure.

These legislative changes reflect the broader feeling of El Salvador's population. Local media reported a recent survey, which revealed that 92% of citizens did not use Bitcoin in transactions throughout 2024.

Several studies of respectable research institutes in El Salvador indicated that 92% of the population did not use Bitcoin in 2024, the year in which it registered its lowest use since 2021, the report these.

El Salvador continues to support Bitcoin

Despite these regulatory changes, El Salvador continues to get involved with Bitcoin on several fronts. The country expanded its Bitcoin reserves a week before renovations, signaling its long -term commitment to digital assets. In addition, El Salvador has aimed at Bitcoin acquisitions with a discounted $ 6.7 billion sales in BTC by the US government.

Bitcoin also brought economic benefits to El Salvador. Three months ago, the government took advantage of the price of Bitcoin to repurchase national debt, strengthening its fiscal position.

We promise to eliminate political debt. People complained that we had not yet fulfilled our promise. It took a while, but we heard the people, and today we are fulfilling. No longer financing political parties with people's money, said El Salvador President Nayib Bukele, in a post at X.

Strategic approach

These actions highlight the strategic approach of management to use Bitcoin while adapting to international financial pressures. Meanwhile, El Salvador continues to attract large crypto companies. Stablecoin Tether station recently moved to the country after ensuring a significant license.

Today there was a meeting that will change the course of history. Great minds around a table in El Salvador, shared Tether's CEO, Paolo Ardoino, X.

In addition, the Rumble video platform is allegedly considering moving its operations to El Salvador. These highlights consolidate the country's appeal as a crypto -friendly jurisdiction.

While the role of the state in the adoption of bitcoin decreases, private sector involvement remains active. Similarly, Bitcoin's strategic acquisitions around the country continue. As the agreement with the IMF advances and crypto companies establish operations in El Salvador, the country's experiment with Bitcoin remains a focal point for global financial and cryptocurrency markets.