El Salvador Celebrates 4 Years With Bitcoin as Legal Tender
El Salvador’s Bitcoin Office marked the anniversary of the country’s Bitcoin legal tender law, which first came into effect in September 2021. In a Sunday X post, the office highlighted that the national Bitcoin reserve now holds 6,313 BTC, valued at more than $702 million, alongside a new banking law enabling Bitcoin investment banks to serve sophisticated investors.
The government agency also emphasized education milestones, stating that 80,000 public servants have received Bitcoin certification, and that public programs in Bitcoin and artificial intelligence education are now available nationwide.
Mixed outcomes of El Salvador’s Bitcoin experiment
Although El Salvador was the first country to adopt Bitcoin as legal tender and establish a strategic reserve, the government has scaled back its policies under the terms of a $1.4 billion loan agreement with the International Monetary Fund (IMF).
The loan conditions led to the repeal of the legal tender law, a commitment to halt further Bitcoin purchases with public funds, and reduced support for the Chivo Bitcoin wallet, which saw limited adoption among residents. According to an IMF report published in July, El Salvador has not added to its Bitcoin holdings since December 2024, confirmed in a letter signed by the central bank president and finance minister.
This has fueled debate within the Bitcoin community. Advocates argue that education initiatives must expand to ensure the benefits of Bitcoin adoption are felt by ordinary Salvadorans rather than concentrated in government and corporate hands. Critics from NGOs also question whether the policies serve the broader population.
Sources:
https://cointelegraph.com/news/el-salvador-bitcoin-anniversary-mixed-results-4-years
https://x.com/bitcoinofficesv/status/1964700306060546552