El Salvador marks the four-year anniversary of adopting bitcoin as legal tender, but the results of this experiment have been mixed. The country became a pioneer in government adoption of bitcoin, but later had to reconsider its cryptocurrency policy.
El Salvador's Bitcoin office celebrates 'Bitcoin Day' — the anniversary of the enactment of the law recognizing Bitcoin as legal tender in September 2021. In a Sunday post on social media X, the agency highlighted the country's achievements in the field of cryptocurrency.
El Salvador has accumulated a strategic reserve of 6,313 Bitcoins $BTC worth over $702 million. The new banking law now allows investment banks dealing with Bitcoins to serve experienced investors. Additionally, 80,000 public servants have received certifications to work with the first cryptocurrency.
The country also launched several government educational programs on Bitcoin and artificial intelligence. These initiatives became part of a broader strategy to promote technological innovations in the Central American state.
IMF pressure forced a reassessment of the course
Despite its status as a pioneer in government adoption of Bitcoin, El Salvador was forced to reconsider its cryptocurrency policy. The reason was the desire to obtain a loan from the International Monetary Fund (IMF).
In January, the country's parliament repealed the law on Bitcoin as legal tender and agreed not to purchase additional Bitcoins with public funds. These conditions became part of the loan agreement with the IMF for $1.4 billion.
The government also agreed to reduce support for its Bitcoin wallet Chivo, which has not gained widespread adoption among the country's residents. The wallet, designed specifically for the citizens of El Salvador, has faced technical issues and low levels of acceptance among the population.
The IMF published a report in July, which showed that El Salvador had not purchased new Bitcoins since signing a loan agreement for $1.4 billion in December 2024. This information came as a real shock to the cryptocurrency community.
The report contained a letter of intent signed by the president of the Central Bank of El Salvador, Douglas Pablo Rodríguez Fuentes, and the Minister of Finance, Jerson Rogelio Posada Molina. The document confirmed that the amount of Bitcoins controlled by the government remains unchanged.
El Salvador's policy has drawn criticism from some Bitcoin supporters and non-governmental organizations. Critics argue that Bitcoin policy helps the government but does not benefit ordinary residents of the Central American country.
Education as the key to success
Experts emphasize the need to expand educational initiatives to fully realize the potential of the world's first decentralized electronic money transfer system among participants. It is important to develop acceptance of the technology among the local population, not just government institutions and international corporations.
