El Salvador Weighs Bitcoin Law Change to Access $3.3 Billion in Loans

El Salvador’s mandatory Bitcoin requirements for businesses could soon end as the country negotiates access to major international financing, including $1.3 billion from the International Monetary Fund (IMF).

The proposed amendment would end a key provision of the country’s groundbreaking 2021 cryptocurrency legislation, making Bitcoin acceptance optional for merchants rather than compulsory. The change could unlock a total of $3.3 billion in loans, with the World Bank and Inter-American Development Bank each offering $1 billion alongside the IMF funding.

The move signals a potential compromise between President Nayib Bukele’s ambitious cryptocurrency agenda and international lenders’ concerns. Bukele’s national Bitcoin fund has grown to approximately $600 million amid Bitcoin’s rise to nearly $100,000, though domestic adoption has fallen short of government expectations.

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“The country’s venture into Bitcoin hasn’t gained the widespread local acceptance we hoped for,” Bukele recently acknowledged in an interview with Time Magazine, while maintaining overall satisfaction with his cryptocurrency strategy since its 2021 implementation. “The positive aspect is that it is voluntary; we have never forced anyone to adopt it. We offered it as an option, and those who chose to use it have benefited from the rise in Bitcoin.”

The IMF has gradually adjusted its position on El Salvador’s cryptocurrency experiment. After initially demanding the complete removal of Bitcoin’s legal tender status in January 2022, the fund shifted to softer recommendations by October, focusing on transparency and financial risk management.

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If approved, the policy change would mark the first major revision to El Salvador’s pioneering legislation, which made it the first nation to grant Bitcoin equal status with its official currency. The government is expected to announce its decision on the international lending package in upcoming weeks.

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