All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- U.S. Senator Bob Menendez, a vocal critic of El Salvador’s Bitcoin Law, had previously accused Nayib Bukele of using Bitcoin for illicit purposes.
- Despite U.S. opposition and Menendez’s efforts, including the ACES Act targeting El Salvador’s cryptocurrency policies, Bukele maintained his pro-Bitcoin stance.
El Salvador President Nayib Bukele took a dig at Bitcoin critic and former US Senator Bob Menendez, who faced an 11-year prison sentence on January 29, as investigators found half a million cash and gold bars inside his house.
Interestingly, some time back, Menendez accused Nayib Bukele of using Bitcoin for illicit activities. In response to his previous comments, Bukele said: “This guy said we used Bitcoin for money laundering and corruption”.
This guy said we used Bitcoin for money laundering and corruption 😂 https://t.co/FJpT3gptna
— Nayib Bukele (@nayibbukele) January 30, 2025
For years, Menendez criticized Nayib Bukele over El Salvador’s Bitcoin Law, accusing the country of financial irresponsibility. Now, the so-called anti-corruption advocate finds himself exposed as a gold-hoarding fraud. FBI raids in 2022 uncovered cash hidden in jackets and 13 gold bars linked to bribery schemes.
Menendez Had Problem With Nayib Bukele Making Bitcoin a Legal Tender
In the period between 2019 to 2024, Menendez served as chairman of the Senate Foreign Relations Committee and never missed a chance to target Bitcoin. His criticism of El Salvador started when Nayib Bukele’s government passed a law in 2021 making Bitcoin a legal tender.
Menendez was far from pleased. In response, the U.S. swiftly introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act in 2022, co-sponsored by Menendez and Senator Jim Risch. The act directed federal agencies to investigate Bitcoin’s “potential risks to the global financial system.”
Menendez aggressively advocated for sanctions against El Salvador’s Chivo wallet operators and sought to sever the country from U.S. trade agreements. However, Nayib stood firm, and El Salvador doubled down on its Bitcoin adoption.
El Salvador Bows to IMF Pressure?
Known for its crypto-friendly policies, the Latin American nation of El Salvador has finally conceded to the pressure from the International Monetary Fund (IMF) in order to amend its Bitcoin law, scaling back its exposure to the leading cryptocurrency. This comes as the country’s Bitcoin advisor, Max Keiser, said that El Salvador plans to have 20,000 BTC in its reserves, as mentioned in our previous report.
On Wednesday, January 29, a Reuters report noted that the country’s Legislative Assembly approved a bill from President Nayib Bukele to revise Bitcoin regulations. This was in order to meet the conditions of a $1.4 billion loan agreement with the IMF secured in December 2024. In the recent amendment, El Salvador made having Bitcoin optional for businesses instead of it being a mandatory form of payment.
After weeks of deliberation, President Bukele presented the proposal to Congress, where it was swiftly approved in just minutes. The reform passed with an overwhelming 55 votes in favor and only two against. Ruling party lawmaker Elisa Rosales emphasized that the amendment was essential to secure Bitcoin’s “status as legal tender” while streamlining its “practical application.”
Despite this scaling back, El Salvador remains the preferred destination for top crypto firms like Tether. The USDT stablecoin issuer relocated to the Latin American country by securing a Digital Asset Service Provider (DASP) license, as noted in our earlier post.
