- El Salvador, the first country to make Bitcoin legal tender, revised its Bitcoin law to comply with an IMF Deal.
- The country secured a $1.4 billion IMF loan in December 2024, requiring a scaling back of Bitcoin adoption.
- In January 2025, lawmakers approved amendments limiting Bitcoin’s official use, raising concerns about the nation’s future Bitcoin strategy.
El Salvador’s Bitcoin Law Under the IMF Deal
El Salvador, the first country to make Bitcoin legal tender, recently revised its Bitcoin law to comply with an International Monetary Fund (IMF) agreement. The nation secured a $1.4 billion IMF loan in December 2024, which required scaling back Bitcoin adoption. In January 2025, lawmakers approved amendments limiting Bitcoin’s official use. This has raised concerns about the nation’s future Bitcoin strategy, creating uncertainty around government holdings and adoption policies.
Key Changes in the Bitcoin Law
Under the revised law, Bitcoin is no longer classified as an official currency but remains a “voluntary legal tender.” Key changes include:
- Businesses are no longer required to accept Bitcoin.
- Tax payments and government fees cannot be settled in Bitcoin.
- The government is not obligated to facilitate Bitcoin transactions, impacting the state-backed Chivo wallet.
Mixed Reactions and Future Uncertainty
JAN3 CEO Samson Mow highlighted the complexity of the new law, stating that Bitcoin “both is and isn’t legal tender.” He also raised concerns about whether El Salvador will continue accumulating Bitcoin under the IMF agreement, as the language in the deal remains ambiguous. While the government seems committed to Bitcoin, future restrictions may arise based on political and economic factors.
What’s Next for Bitcoin in El Salvador?
Despite regulatory changes, Bitcoin remains widely used in El Salvador, particularly among grassroots communities. While government policies may shift over time, Bitcoin adoption at the individual and business levels continues to grow. The IMF Deal & Bitcoin debate underscores the delicate balance between financial stability and economic independence. How El Salvador navigates this challenge will shape its Bitcoin future in the years ahead.
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