## El Salvador Modifies Bitcoin Legislation to Guarantee $1.4 Billion IMF Accord
In an attempt to guarantee a crucial $1.4 billion arrangement with the International Monetary Fund (IMF), El Salvador has altered its rules regarding Bitcoin.
According to Reuters, the Salvadoran Congress quickly approved President Nayib Bukele’s proposed changes, adjusting the nation’s Bitcoin strategy with the IMF’s requirements for the credit.
Struggling with considerable debt and its unusual Bitcoin experiment, El Salvador had few options beyond seeking monetary aid. With increasing bond yields and limited access to fresh capital, the IMF accord has become essential to supporting the government’s economic restructuring plans.
Ruling party legislator Elisa Rosales stated that the modification, passed with 55 votes, was required to ensure Bitcoin’s “permanence as legal tender” while promoting its “real implementation.”
Under the amended law, businesses are no longer required to accept Bitcoin as payment, making its use optional. Tax payments are now restricted to US dollars, and the changes set the stage for reducing government-led crypto projects, including the state-backed Chivo wallet.
Despite these modifications, Bitcoin remains legal tender in the nation, and El Salvador continues to accumulate more of the cryptocurrency. According to the National Bitcoin Office, El Salvador currently holds 6,049 Bitcoins, valued at approximately $633 million, with unrealized gains of 127%.
Following the IMF agreement, El Salvador intensified its Bitcoin accumulation strategy, deviating from its “one Bitcoin a day” plan by purchasing 11 Bitcoins worth over $1 million at the time.
Stacy Herbert, head of the National Bitcoin Office, stated that the country plans to accumulate Bitcoin at an “accelerated” rate. As part of its latest purchases, El Salvador added 12 Bitcoins on January 21.
On September 6, 2021, El Salvador pioneered a move, emerging as the globe’s initial nation to formally embrace Bitcoin as recognized currency. Subsequently, the nation has initiated a multitude of cryptocurrency-centric projects with the goal of incorporating Bitcoin into its financial framework. The authorities have put into operation over 200 Bitcoin ATMs, positioning the nation as one of the most accommodating crypto areas worldwide within the trading domain.
Additional endeavors encompass the volcano energy undertaking, which is geared towards harnessing sustainable energy derived from volcanic origins for Bitcoin mining, alongside the volcano bond, a Bitcoin-supported bond initiative crafted to accumulate capital for infrastructural developments and the establishment of Bitcoin City, a projected cryptocurrency center exempt from taxes and fueled by geothermal power.
Previously, Bitfinex Derivatives procured the previously stated authorization. On January 13, Tether Group, a frontrunner in the cryptocurrency sector, declared intentions to relocate its entire operations to El Salvador subsequent to its Seychelles-based division, Bitfinex Derivatives, securing a digital asset service provider permit within El Salvador. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
