El Salvador's ambitious adoption of Bitcoin as legal tender has reached its fourth anniversary, presenting a complex picture of pioneering achievements alongside significant policy adjustments. What began as a bold vision to transform national finance now stands as a crucial test case, continuously evolving on the global stage.
El Salvador's Bitcoin Journey and Key Milestones
Four years on, El Salvador maintains a robust Bitcoin reserve of 6,313 BTC, valued at over $700 million. The nation has also implemented pioneering legal frameworks, including the Digital Asset Issuance Law and an Investment Banking Law, alongside a new law specifically enabling Bitcoin investment banks to cater to sophisticated investors. Furthermore, extensive educational initiatives have certified 80,000 public servants in Bitcoin and introduced public programs combining the cryptocurrency with AI, significantly reshaping the country's international image as a recognized Bitcoin pioneer.
Navigating International Pressure and Policy Shifts
Despite early enthusiasm, El Salvador's Bitcoin strategy has faced considerable pressure from international bodies, notably the International Monetary Fund (IMF). As part of a deal with the IMF, the government repealed the Bitcoin legal tender law and committed to halting new public fund purchases of BTC, with no additional Bitcoin acquired since December 2024. Support for the national Chivo wallet has also been scaled back. These policy shifts have drawn criticism from Bitcoin advocates and NGOs, who argue that such rollbacks prioritize state interests and international agreements over broader citizen adoption and benefit.
