El Salvador Revises Bitcoin Law Making Adoption Optional for Businesses
El Salvador has amended its Bitcoin law under pressure from the IMF, making Bitcoin optional for businesses instead of mandatory. Key points include:
- The Legislative Assembly approved a bill proposed by President Nayib Bukele, aligning with conditions of a $1.4 billion IMF loan agreement.
- Business acceptance of Bitcoin is now discretionary; previously, it was required.
- The amendment passed with 55 votes in favor and two against.
- Despite the changes, El Salvador continues to purchase Bitcoin, holding approximately 6,049 BTC valued at around $633 million, reflecting a 127% profit from initial investments.
- Since adopting Bitcoin as legal tender in 2021, El Salvador faced criticism for its volatile approach but maintained its strategy, utilizing volcanic energy for mining.
- El Salvador mined 474 BTC worth $29 million since 2021 using geothermal energy from the Tecapa volcano.
- The country launched Chivo Wallet to facilitate Bitcoin transactions and plans a "Bitcoin City," attracting significant investment, including a $1.62 billion commitment from Turkish company Yilport.
El Salvador balances regulatory changes with ongoing blockchain initiatives amid global scrutiny.