El Salvador's Bitcoin Journey: Four Years of Mixed Outcomes

According to Cointelegraph, El Salvador is marking the anniversary of its Bitcoin legal tender law, which took effect in September 2021, with celebrations dubbed "Bitcoin Day." The country's Bitcoin Office has highlighted its strategic reserve, which now holds 6,313 BTC, valued at over $702 million. Additionally, a new banking law has been introduced, allowing Bitcoin investment banks to cater to sophisticated investors. As of 2025, 80,000 public servants have received Bitcoin certification, and the nation hosts several public education programs focused on Bitcoin and artificial intelligence. Despite being the first country to adopt Bitcoin as legal tender and establish a strategic reserve, El Salvador has adjusted its Bitcoin policies to comply with a loan agreement with the International Monetary Fund (IMF). This four-year experiment has produced mixed results, leaving the Bitcoin community divided over the implications of nation-state-level Bitcoin adoption. In January, El Salvador's legislature repealed the Bitcoin legal tender law and agreed not to purchase additional Bitcoin using public funds as part of a $1.4 billion loan deal with the IMF. The government also scaled back support for its Chivo Bitcoin wallet, which saw limited use among residents. An IMF report published in July revealed that El Salvador has not acquired new Bitcoin since signing the loan agreement in December 2024, causing concern within the crypto community. The report included a letter of intent signed by El Salvador's central bank president, Douglas Pablo Rodríguez Fuentes, and minister of finance, Jerson Rogelio Posada Molina, confirming that the government's Bitcoin balance remains unchanged. El Salvador's Bitcoin policies have faced criticism from some Bitcoin advocates and non-government organizations, who argue that the policies benefit the government more than the average citizens of the Central American country. Critics emphasize the need for more educational initiatives to fully harness the advantages of Bitcoin, the world's first decentralized peer-to-peer electronic cash system, and to encourage adoption by the local population rather than just government agencies and international corporations.