The term "Bitcoin Act" has been associated with significant legislative initiatives in recent years, notably in El Salvador and the United States.
El Salvador's Bitcoin Law
In June 2021, El Salvador became the first country to adopt Bitcoin as legal tender. The Legislative Assembly passed the Bitcoin Law on June 9, 2021, with a majority vote, and it came into effect on September 7, 2021. This law allowed Bitcoin to be used for all transactions, alongside the U.S. dollar, aiming to enhance financial inclusion and facilitate remittances. However, the law faced criticism due to Bitcoin's volatility and potential implications for financial stability. In January 2025, the law was substantially rescinded following an agreement between the Salvadoran government and the International Monetary Fund, removing Bitcoin's official status in exchange for a loan.
United States' Strategic Bitcoin Reserve
More recently, in March 2025, President Donald Trump signed an executive order to establish a strategic Bitcoin reserve. This initiative aims to create a "digital Fort Knox" by storing Bitcoins seized through criminal or civil proceedings, preventing premature liquidation and potential financial losses. The current estimate of the government's Bitcoin reserve is about 200,000 Bitcoins, worth approximately $16.5 billion.The administration also plans to develop strategies to accumulate more Bitcoin for the reserve without imposing additional costs on taxpayers.
These developments highlight the evolving relationship between governments and cryptocurrencies, reflecting diverse approaches to integrating digital assets into national financial systems.
