El Salvador Revises Bitcoin Strategy Following IMF’s Directive

El Salvador’s Congress swiftly approved a bill to amend the country’s bitcoin strategy, in line with agreements with the IMF. This was reported by Reuters.

According to the news agency, lawmakers ratified the document “within minutes” of receiving it from President Nayib Bukele. The majority in Congress are members of his party, “New Ideas.”

In September 2021, El Salvador became the first country in the world to recognize bitcoin as legal tender. Services and merchants were required to accept the cryptocurrency. 

The government encouraged Salvadorans to use the Chivo wallet by offering $30 in digital gold for registering in the app. The state regularly purchased bitcoins and engaged in mining.

In December 2024, the IMF and El Salvador reached an agreement for $1.4 billion in credit financing. With regional structures participating in the program, the package size exceeds $3.5 billion.

The Fund set several requirements regarding adjustments to the country’s cryptocurrency policy, including:

• gradual withdrawal of government participation in the Chivo project;
• tax collection only in US dollars as El Salvador’s national currency;
• limiting transactions with the first cryptocurrency in the public sector;
• voluntary acceptance of bitcoin payments by the private sector for goods and services.

Presenting the legislative changes, ruling party deputy Elisa Rosales described them as necessary to ensure “the permanence of bitcoin as legal tender” and to facilitate its “practical implementation.” 

The reform was passed with 55 votes in favor and two against.

Following the agreements with the IMF, El Salvador significantly increased its bitcoin purchases. Head of the National Bitcoin Office, Stacy Herbert, stated that the process might continue “at an accelerated pace.”

Data indicates that the government has not ceased accumulating digital gold. However, whereas previously the authorities added about 1 BTC daily to their balance, this now occurs less uniformly.

At the time of writing, the country holds 6049 BTC, valued at $636.5 million.

Previously, US President Donald Trump established a task force on digital assets, which will also assess the prospects of creating a national cryptocurrency reserve.