El Salvador, which once made headlines for legalizing Bitcoin as legal tender, is now facing changes in its crypto ambitions following an agreement with the International Monetary Fund (IMF).
Changes in Bitcoin Utilization Plans
According to Quentin Ehrenmann of the NGO My First Bitcoin, the country's agreement with the IMF has led to a quiet retreat from earlier crypto ambitions. State-led education programs have been halted, and there is little sign of renewed public engagement. Ehrenmann stated, "Bitcoin benefits the state’s treasury, not its people."
Withdrawal from Bitcoin Accumulation
Despite public claims of ongoing BTC accumulation, an IMF report confirmed that El Salvador agreed to stop buying more Bitcoin—directly contradicting the government’s own messaging.
Issues with Bitcoin Education and Usage
Some locals and travelers continue to use Bitcoin for everyday purchases via the Lightning Network. However, a journalist's report from 2023 noted that even using BTC required explanation from the staff, highlighting technical gaps and lack of education that pose barriers to adoption.
El Salvador's crypto journey made global headlines in 2021, but now, under financial constraints and without public education initiatives, its future as a Bitcoin pioneer looks increasingly uncertain.
