El Salvador Revises Bitcoin Law for IMF Deal

Lawmakers in El Salvador have adjusted the country’s Bitcoin policy to align with the conditions of a new deal with the International Monetary Fund (IMF). 

El Salvador secured a $1.4 billion loan from the IMF. However, the country’s leadership agreed to scale back its involvement with Bitcoin.

Bitcoin Adoption Remains Strong

Although BTC remains legal tender in El Salvador, the new law no longer mandates businesses to accept Bitcoin. Private merchants can opt whether or not to accept BTC.

According to reports, the focus of the amendment is to make the use of Bitcoin more practical. The policy change does not affect El Salvador’s broader involvement in BTC. The Central American nation has continued to build up its BTC investment. Its recent investment in the asset added 12 BTC to its reserves. Top officials within the nation’s government revealed further plans to invest in Bitcoin.

Interestingly, El Salvador’s current BTC holding is valued at around $633 million. The country has made over 127% profit on its BTC investment.

Growing institutional interest in BTC

Meanwhile, the Czech National Bank is reportedly considering holding BTC in its reserves. The bank’s governor, Ales Michl, explained that nothing was concrete yet. However, serious considerations were going on.

Interestingly, the Czech National Bank is not the only organization wielding an interest in Bitcoin. Several financial organizations and governments are moving to add Bitcoin to their reserves. Illinois recently proposed a 5-year strategic Bitcoin reserve.

Furthermore, US states such as Texas, Dakota, and New Hampshire have expressed interest in a BTC reserve. Additionally, David Sacks, who leads the White House’s crypto policy, recently confirmed President Trump’s interest in a BTC reserve.

While speaking to FOX Business, Sacks noted that the president had instructed officials to explore the possibility of a Bitcoin reserve. While there’s no timeline for launching a BTC reserve, some users believe President Trump could implement it within his first year in office.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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