El Salvador Congress Greenlights Bitcoin Law to Make BTC Optional for Businesses

President Nayib Bukele's measure to amend El Salvador's Bitcoin law to conform to an IMF agreement was delivered by the country's congress. As part of the deal, the administration of President Nayib Bukele has relaxed its regulations regarding Bitcoin, which was a major obstacle in previous negotiations.

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Nausheen Thusoo
Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

El Salvador congress has decided to implement an amendment to its Bitcoin law. According to the official reports, the El Salvador congress delivered a bill by President Nayib Bukele to change El Salvador’s Bitcoin law to comply with an agreement with the IMF to make the adoption of cryptocurrency voluntary.

The law was quickly passed by the country’s Congress, being in tandem with previous promises. Additionally, members of Bukele’s New Ideas Party predominate in the Congress.

Will The New Amendment Affect Previous Pro-Crypto Stance?

El Salvador was the first nation to accept cryptocurrencies as legal cash in 2021, joining the U.S. dollar, which it had done so twenty years before. The action garnered international notice and made Bukele one of the most well-known supporters of bitcoin.

President Nayib Bukele’s administration has loosened its laws governing Bitcoin as part of the agreement, which was a significant barrier in earlier talks.

Due to these legal advancements, the private sector will now have the freedom to decide whether or not to adopt cryptocurrencies under the country’s new regulations.

However, the amendment will not likely hamper the nation’s Bitcoin buying spree for the national reserve.

Bitcoin use in the private sector will now be optional, nevertheless, due to recent regulatory developments. Public sector access to Bitcoin-related economic activities, such as transactions and purchases, will be restricted.

Also Read: Poland Jumps Ahead of El Salvador to Claim Fifth Spot As Bitcoin ATM hub Amid Rise in Userbase

IMF’s Cautious Stance For El Salvador’s Bitcoin Policy

El Salvador has often received warnings from the IMF about its Bitcoin policy.

In the past, the international group has requested that the country “limit the public sector exposure to Bitcoin, give strength to the regulatory framework and oversight of the Bitcoin ecosystem, and narrow the scope of the Bitcoin law.”

The recommendations were made while the nation and the international lender were negotiating to promote economic stability. But even when pro-crypto regulations were implemented, El Salvador continued to purchase Bitcoin in spite of all the warnings.

Even though El Salvador and the International Monetary Fund prioritize strengthening reforms in their program negotiations, tackling the risks associated with Bitcoin use is still a major topic of debate between the two institutions.

The main areas of contention between international regulatory bodies and the digital asset sector are the idea of regulated markets and the elimination of governmental power.

However, it now appears that when it comes to economic policy and Bitcoin rules, the IMF and El Salvador will probably agree at keeping some restrictions.

Also Read: Argentina & El Salvador Announces Join Efforts On Regulations To Boost Digital Assets In Both The Countries

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