El Salvador Bitcoin: How a Nation Bet Everything on Crypto

When El Salvador Bitcoin, the world's first national adoption of Bitcoin as legal tender. Also known as Bitcoin as legal tender, it was meant to remake finance for the unbanked and break free from the U.S. dollar's grip. In September 2021, El Salvador became the first country to make Bitcoin official money—alongside the U.S. dollar. Not as an investment. Not as a side project. But as real cash you could use to buy coffee, pay taxes, or send remittances.

This wasn’t just a policy shift—it was a cultural gamble. The government rolled out the Chivo wallet, gave people $30 in Bitcoin just to sign up, and forced businesses to accept it. But behind the headlines, things got messy. Many people didn’t understand how to use it. ATM fees ate into their Bitcoin rewards. The volatility scared off shopkeepers. And the World Bank refused to fund the project, calling it too risky. Still, over 40% of Salvadorans used Chivo at least once. That’s not a failure—it’s a real-world experiment on a national scale.

What’s happening now? Bitcoin isn’t dominating daily transactions, but it’s still alive. People use it to send money home from the U.S., cutting remittance fees from 10% down to under 2%. The government keeps buying more Bitcoin, even when prices drop. And while critics call it a failure, supporters point to the 70% of adults who were unbanked before—and now have a digital wallet. It’s not perfect. But it’s the only time a country has tried this.

El Salvador didn’t just adopt a cryptocurrency. It tested whether a poor nation could use Bitcoin to bypass broken systems. The results are mixed, but the world is watching. Below, you’ll find real stories, hard data, and deep dives into what worked, what crashed, and why this tiny country still matters to anyone who cares about money’s future.

El Salvador's Bitcoin Adoption Strategy: What Really Happened and Where It Stands in 2025

El Salvador made Bitcoin legal tender in 2021, but by 2025, it dropped the mandate. Still, the country holds over 6,100 BTC and remains a global crypto hub. Here’s what actually happened.

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