- El Salvador’s 2021 Bitcoin adoption faced challenges, leading to policy reversals in 2025.
- Amendments include making BTC acceptance voluntary and ending its use for tax payments.
- Grassroots Bitcoin initiatives persist, reflecting ongoing local support despite governmental policy changes.
In 2021, El Salvador made headlines as the first nation to adopt Bitcoin (BTC) as legal tender, a move that garnered global attention. However, recent amendments to its BTC law have altered this pioneering stance. Samson Mow, CEO of Bitcoin advocacy firm JAN3, believes these changes make El Salvador “less unique” in the cryptocurrency landscape.
Under President Nayib Bukele’s leadership, El Salvador embraced Bitcoin in 2021, aiming to revolutionize its economy. The government introduced the Chivo Wallet, a state-backed digital wallet, and mandated businesses to accept Bitcoin as payment. Citizens received $30 in BTC to encourage adoption. Despite these efforts, by 2022, only 20% of businesses accepted BTC, and a mere 7.5% of Salvadorans used it regularly. The majority preferred traditional cash transactions.
Facing economic challenges and seeking a $1.4 billion loan from the International Monetary Fund (IMF), El Salvador amended its Bitcoin law in early 2025. The revisions made BTC acceptance by businesses voluntary and prohibited its use for tax payments. The government also decided to phase out its involvement with the Chivo Wallet. These changes were conditions set by the IMF to mitigate financial risks associated with cryptocurrency.
Samson Mow, whose firm JAN3 was instrumental in El Salvador’s initial Bitcoin adoption, expressed disappointment over the recent amendments. He noted that El Salvador’s unique position in the crypto world has diminished. Mow pointed out that other regions, such as Bhutan and Prospera, now offer similar or even more favorable conditions for BTC enthusiasts.
Ongoing Bitcoin Initiatives
Despite the policy shift, grassroots Bitcoin initiatives in El Salvador continue. In the municipality of Berlín, over 100 businesses still accept BTC, driven by local leaders like Evelyn Lemus who promote BTC education. Additionally, El Salvador’s BTC Office remains active, recently announcing the addition of another BTC to the country’s holdings.
El Salvador’s experience serves as a case study for other nations considering cryptocurrency adoption. The initial enthusiasm showcased the potential for financial innovation, but the subsequent policy reversals highlight the challenges and risks involved. As countries like Guatemala observe El Salvador’s journey, they may approach BTC adoption with increased caution, balancing innovation with economic stability.
El Salvador’s bold experiment with BTC has been a rollercoaster of ambition, challenges, and adjustments. While the nation has scaled back its official support, the enduring grassroots initiatives indicate that BTC’s story in El Salvador is far from over. The world watches closely, drawing lessons from this pioneering endeavor.