Lawmakers in El Salvador rush new bitcoin reform after IMF deal

El Salvador's Congress on Wednesday swiftly approved a bill sent just minutes earlier by President Nayib Bukele to amend its bitcoin law to comply with a deal with a key international lender to make acceptance of the cryptocurrency voluntary.

The Congress is dominated by lawmakers from Bukele's New Ideas Party.

In 2021, El Salvador became the first country to make the cryptocurrency legal tender alongside the U.S. dollar, which it adopted two decades earlier. The move attracted global attention and transformed Bukele into one of bitcoin's most prominent backers.

In December, the government struck a $1.4 billion loan deal with the International Monetary Fund (IMF) that scaled back its bitcoin embrace after the lender urged officials to limit its exposure. The lender specifically advocated making acceptance of bitcoin voluntary for the private sector, which is spelled out in the hastily-approved law.

Prior to the vote, ruling party lawmaker Elisa Rosales framed the reform as needed to guarantee bitcoin's "permanence as legal tender" while facilitating its "practical implementation."

The reform won passage with 55 votes in favor, and only two against.

U.S. President Donald Trump's election win late last year, along with the expectation of more favorable cryptocurrency policies from Washington, have sent bitcoin's value to record highs.

Bukele's government has recently indicated it will continue buying bitcoin to add to its reserves.