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El Salvador would rush to enact a new Bitcoin law to comply with the agreement with the IMF.
The legislation reportedly revokes a previous mandate that forced businesses to accept Bitcoin as a means of payment.
El Salvador's Congress has quickly approved a law to modify its Bitcoin laws in order to comply with an agreement reached with the International Monetary Fund (IMF) to adjust its exposure to the cryptocurrency.
The bill was ratified by the country's Legislative Assembly just minutes after President Nayib Bukele sent the legislation, Reuters reported on January 29.
El Salvador reached a $1.4 billion loan agreement with the IMF in December, with the agency demanding the Bukele government reduce its involvement with Bitcoin and make the cryptocurrency optional and voluntary for private sector merchants.
The reform was approved with 55 votes in favor and only two against. Previously, it was a legal requirement for businesses to accept Bitcoin as payment.
Ruling party lawmaker Elisa Rosales said the amendment was necessary to ensure Bitcoin's "permanence as legal tender" while facilitating its "practical implementation."
