El Salvador became the first country to adopt Bitcoin as legal tender, but by 2025, its stance has shifted significantly.
Bitcoin Accumulation Strategy
On November 16, 2022, President Nayib Bukele announced that El Salvador would begin purchasing 1 Bitcoin per day. A National Bitcoin Office was also established to coordinate crypto initiatives. These actions, along with BTC’s legal status, indicated the government’s commitment to Bitcoin adoption.
Bitcoin Slowdown Linked to IMF Bailout
El Salvador's economy has faced challenges due to rising debt and inflation. To stabilize finances, the government sought assistance from the International Monetary Fund (IMF), which approved a $1.4 billion Extended Fund Facility in February 2025. However, the IMF made it clear that El Salvador must limit public-sector Bitcoin activity, including acquisitions. The government tried to maintain its purchasing claims, but a July 2025 IMF report indicated otherwise.
Future of Bitcoin in El Salvador
The IMF report stated that El Salvador has not purchased new Bitcoin since December 2024. Furthermore, Bitcoin lost its legal tender status in January 2025. The state-sponsored Chivo Wallet is expected to be privatized by the end of July 2025, and there are rumors that Fidebitcoin, the state-run Bitcoin trust, may be dissolved.
Recent developments regarding Bitcoin in El Salvador signify a shift towards economic pragmatism. The future of cryptocurrency use in the country remains uncertain.
