Nikolas Sargeant
El Salvador has taken a significant step in reshaping its cryptocurrency policy by passing amendments to its Bitcoin laws, carefully balancing International Monetary Fund (IMF) requirements with its innovative digital currency strategy.
In a swift legislative action on January 29, El Salvador's Congress approved crucial modifications to its Bitcoin framework, fulfilling conditions tied to a $1.4 billion IMF loan agreement. The bill, introduced by President Nayib Bukele, received overwhelming support with 55 votes in favor and only two against.
Strategic Shift: Business Bitcoin Acceptance Becomes Optional
The reformed legislation marks a pivotal change by removing the mandatory requirement for businesses to accept Bitcoin as payment. Despite this adjustment, ruling party lawmaker Elisa Rosales emphasized that the amendment reinforces Bitcoin's position as legal tender while optimizing its implementation.
El Salvador continues to demonstrate its commitment to cryptocurrency by expanding its Bitcoin holdings. The nation recently added 12 BTC to its reserves, bringing its total holdings to 6,049 BTC, valued at approximately $633 million. With an average purchase price of $46,000 per Bitcoin, the portfolio has generated an impressive 127% return on investment.
The country's Bitcoin Office has confirmed plans to intensify its acquisition strategy in 2025, showing no intention of diminishing its position as a global cryptocurrency leader. This commitment comes despite the planned changes to the Chivo wallet system, which will likely transition to private-sector alternatives.
States Lead Bitcoin Revolution: New Hampshire and North Dakota Join Cryptocurrency Movement
The ripple effect of El Salvador's pioneering approach continues to influence U.S. state policies. New Hampshire and North Dakota have introduced groundbreaking legislation to establish strategic Bitcoin reserves, following a growing trend of state-level cryptocurrency adoption.
This movement gained momentum after Ohio's proposal to integrate Bitcoin into its treasury reserves, spearheaded by House Republican leader Derek Merrin. Texas joined the initiative through Representative Giovanni Capriglione's Texas Strategic Bitcoin Reserve Act, proposing a minimum five-year holding period for state Bitcoin reserves.
Pennsylvania has taken a bold step by considering legislation that would permit up to 10% of its treasury balance to be allocated to Bitcoin, positioning the cryptocurrency as a hedge against economic uncertainty. This state-level adoption trend parallels the strategies of corporate entities like MicroStrategy and Metaplanet, which continue to expand their Bitcoin holdings.
