Crypto Regulations in El Salvador (2025): From Pioneer to Pragmatic

El Salvador made global headlines in 2021 as the first country to adopt Bitcoin as legal tender. Fast-forward to 2025, and the nation has shifted gears—revoking mandatory Bitcoin acceptance and making its use by businesses and government optional, in line with an IMF-backed reform deal   . While Bitcoin remains legal, it’s no longer accepted for tax payments, and the government is stepping back from its own Chivo Wallet initiative    . At the same time, El Salvador is positioning itself as a crypto-friendly regulator—offering 0% capital gains tax on crypto and earning top rankings in Latin America from regulatory bodies