diff --git a/electrum b/electrum
index cab339c63..500993cf8 100755
--- a/electrum
+++ b/electrum
@@ -125,7 +125,8 @@ def run_non_RPC(config):
             k = keystore.from_keys(text)
         else:
             sys.exit("Error: Seed or key not recognized")
-        k.update_password(None, password)
+        if password:
+            k.update_password(None, password)
         storage.put('keystore', k.dump())
         storage.put('wallet_type', 'standard')
         storage.put('use_encryption', bool(password))