El Salvador Approves Bill to Make Crypto Adoption Voluntary

El Salvador, the world’s first Bitcoin country, has approved a bill making Bitcoin (BTC) and crypto adoption voluntary for its citizens. Although the government has achieved high economic stability via its strategic Bitcoin reserve, only a few citizens have expressed interest in cryptocurrencies and blockchain technology.

El Salvador Amends Bitcoin Laws

El Salvador’s president, Nayib Bukele, has taken it upon himself to ensure widespread adoption of Bitcoin in the country under his administration. On Wednesday, he submitted the Bitcoin law amendment bill to Congress, which won with 55 votes in favor and only two against within a few minutes of submission.

Notably, El Salvador signed a $1.4 billion loan deal with the International Monetary Fund (IMF) in December. Following the agreement, the lender urged the borrowing country to reduce its Bitcoin exposure. Therefore, the amendment was implemented to align with the federation’s recent deal with the IMF.

Meanwhile, the majority of El Salvadorans are not interested in Bitcoin and crypto, as their 43-year-old president is. According to a recent survey, only 7.5% of the country’s population holds and transacts crypto, although the government has embraced BTC as a legal tender since 2021.

El Salvador Keeps Buying

The IMF agreement did not stop El Salvador from adding more BTC to its stash. Thus, the country continues to stack up crypto despite wavering market conditions. According to the Bitcoin Office official tracker, the government holds about 6,050 BTC worth around $629 million.

With the bitcoin spot price of $104,000, the country has achieved over 127% profit from its BTC holdings as it has an average buying price of $46,000.

Earlier this year, President Bukele revealed plans to install a Bitcoin node in every home in El Salvador before the end of the year, transforming the country into a full-fledged blockchain ecosystem. However, following the newly approved bill, homeowners may decide whether or not to have the node installed on their properties.

Meanwhile, El Salvador’s success with Bitcoin has drawn the attention of many federations to the crypto ecosystem. Even the United States is aiming to establish a strategic Bitcoin Reserve.

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