El Salvador is the first country in the world to recognize Bitcoin as legal tender in 2021 under President Nayib Bukele's leadership.
Despite this revolutionary initiative, by mid-2025, this Central American country had gradually limited Bitcoin-related activities due to financial pressures and demands from the International Monetary Fund (IMF).
MAIN CONTENT
El Salvador's Bitcoin accumulation strategy began by buying 1 BTC/day and establishing the National Bitcoin Office.
The IMF requests limitations on Bitcoin activities in the public sector to stabilize finances.
Since late 2024, El Salvador has not bought new Bitcoin and is preparing to privatize the Chivo Wallet, reversing its cryptocurrency policy.
What is El Salvador's Bitcoin accumulation strategy?
El Salvador began buying 1 Bitcoin daily from November 2022 and established a National Bitcoin Office, demonstrating a strong commitment to promoting large-scale Bitcoin adoption.
President Bukele's cryptocurrency-friendly policy and opposition to the traditional financial system helped him achieve a historic re-election in February 2024. This resilience has received widespread domestic support.
How does the IMF impact El Salvador's Bitcoin plans?
To cope with the debt crisis and inflation, El Salvador received a $1.4 billion bailout from the IMF in February 2025 on the condition that it limit public activities related to Bitcoin, including buying, selling, and trading.
"The adoption of Bitcoin in the public sector must be carefully controlled to ensure the long-term financial stability of El Salvador."
Kristalina Georgieva, Managing Director of the International Monetary Fund, 2025
Initially, the El Salvador government denied this condition and asserted it would continue to buy Bitcoin, creating positive pressure on the cryptocurrency market.
Since when has El Salvador been buying Bitcoin?
Reports from the IMF in mid-2025 confirm that El Salvador has not purchased new Bitcoin since December 2024, marking the end of negotiations with the IMF. Transactions on the Bitcoin wallet are essentially internal transfers, not additional BTC purchases.
Notably, Bitcoin has lost its legal tender status in El Salvador since January 2025, highlighting a policy shift.
What will El Salvador do next with its Bitcoin policy?
According to internal sources, El Salvador will privatize the Chivo Wallet by the end of July 2025 and may dissolve Fidebitcoin, the government-managed Bitcoin fund. This move aligns with the IMF's requirements.
"El Salvador's cryptocurrency policy now prioritizes economic stability over technology experimentation."
Cryptocurrency market economist, Pham Tuan, 2025
The abandonment of Bitcoin's central role in the national economy reflects a strategic retreat to maintain financial stability amidst a complex international context.
Frequently Asked Questions
How did El Salvador start adopting Bitcoin?
El Salvador was the first country in the world to recognize Bitcoin as legal tender in 2021 and has been buying 1 BTC daily since 2022 to promote widespread adoption.
Why does the IMF limit El Salvador's Bitcoin activities?
The IMF requires limitations on Bitcoin activities to stabilize finances, reduce public debt risks, and ensure sustainable economic development in El Salvador.
Is El Salvador still buying new Bitcoin?
As of mid-2025, this country has ceased buying new Bitcoin since December 2024, focusing on managing existing assets and complying with IMF requirements.
How does the new policy affect the Chivo Wallet?
The Chivo wallet will be privatized by the end of July 2025, ending the direct state management phase to align with the new financial policy.
Will El Salvador continue with Bitcoin in the future?
The current policy prioritizes financial stability over Bitcoin experimentation; however, the next steps depend on the domestic economic and political situation.
Source: https://tintucbitcoin.com/el-salvador-ngung-mua-bitcoin-tu-12-2024/
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