📅 August 10 | San Salvador, El Salvador
The country that shook the world in 2021 by adopting Bitcoin as legal tender is moving its pieces again, but this time with a much larger—and colder—focus than the initial retail enthusiasm.
The Legislative Assembly approved a new Bitcoin law that makes it clear that the next chapter will not be dominated by small businesses or crypto tourists, but by institutional investors, investment funds, and multinational companies.
With tax incentives, adapted infrastructure, and more sophisticated regulatory requirements, El Salvador seeks to attract large-scale capital, marking an evolution that could redefine its role on the global financial map.
In 2021, President Nayib Bukele made El Salvador the first country to adopt Bitcoin as legal tender, with a campaign directly targeting the population and small businesses. The narrative was clear: democratize access to the financial system and reduce remittance fees.
But four years later, the results of that first phase are mixed. While thousands of Salvadorans downloaded the Chivo Wallet, daily use of Bitcoin in businesses did not grow as expected. Crypto tourism did leave its mark, but the goal of mass adoption in daily life fell short in the face of volatility and a preference for the dollar.
The new Bitcoin law, approved this week, redefines the strategy. Among the key measures:
Tax incentives for corporations that establish financial operations based on Bitcoin.
A regulatory framework closer to international standards, designed to attract investment funds and fintech companies.
Expansion of infrastructure for institutional custody and large-scale trading services.
Sources close to the government indicated that the goal is to position El Salvador as a regional hub for investments in Bitcoin and digital assets, capable of competing with markets like Singapore or Dubai.
“The time for pilot tests is over. Now we want serious, long-term capital,” declared an official from the Ministry of Economy.
Although some critics say this new phase could alienate ordinary citizens from the original project, others believe it is a necessary step to consolidate the country as an innovative financial center.
Topic Opinion:
Retail adoption was a historic experiment, but the real financial muscle comes from institutional investment. However, the challenge will be to maintain a balance: to ensure that the arrival of large players doesn't erase the inclusive spirit that inspired the 2021 law.
In crypto, as in any market, capital rules… but narrative and trust are equally valuable. If El Salvador manages to combine both, it could become a global benchmark beyond the initial hype.
💬 Do you think this shift will benefit the Salvadoran economy or betray the original project?
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