El Salvador Bitcoin: How a Nation Bet Big on Crypto
When El Salvador Bitcoin, the first country to make Bitcoin legal tender. Also known as Bitcoin as legal currency, it sparked global debate on whether crypto can replace traditional money. In September 2021, El Salvador didn’t just experiment with Bitcoin—it made it law. Every business had to accept it. The government bought over 5,000 BTC. Citizens got $30 in free Bitcoin just for downloading the Chivo wallet. This wasn’t a side project. It was a national reset.
Behind this move was a bigger idea: Bitcoin legal tender, a system where Bitcoin functions like the U.S. dollar for everyday payments. El Salvador hoped to cut remittance fees—over 20% of its GDP comes from money sent home by workers abroad. They also wanted to bring the unbanked into the financial system. Nearly 70% of Salvadorans had no bank account. Bitcoin, they thought, could be their bridge.
But the real story isn’t just about ambition. It’s about friction. The Chivo wallet crashed. People didn’t trust it. Merchants complained about price swings. The IMF warned of financial risk. And while the government kept buying Bitcoin, public support dropped below 30%. Still, the experiment didn’t die. Bitcoin ATMs still work. Some farmers get paid in BTC. Miners use cheap geothermal power. And now, other countries are watching—not to copy, but to learn what not to do.
What you’ll find here isn’t hype. It’s the real breakdown: how Bitcoin changed life for ordinary Salvadorans, what went wrong with the Chivo wallet, why mining became a national priority, and how this tiny nation forced the world to take crypto seriously—even if no one else followed suit.
El Salvador's Bitcoin Adoption Strategy: What Really Happened and Where It Stands in 2025
Nov 19, 2025, Posted by Ronan Caverly
El Salvador made Bitcoin legal tender in 2021 to help the unbanked and cut remittance costs. By 2025, it reversed course under IMF pressure-but still holds over 6,100 Bitcoin. Here's what really happened.
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