When Bitcoin El Salvador, the historic 2021 decision by the Central American nation to adopt Bitcoin as legal tender alongside the U.S. dollar. Also known as Bitcoin legalization in El Salvador, it was the first time any country gave a cryptocurrency the same status as its national currency. This wasn’t a test run or a pilot—it was a full legal shift. President Nayib Bukele pushed it through with little debate, claiming it would help the unbanked, cut remittance fees, and attract investment. But what did it actually change for people on the ground?
The Bitcoin legal tender, the official status granted to Bitcoin in El Salvador under the Bitcoin Law passed in June 2021. Also known as legal Bitcoin currency, it meant businesses had to accept Bitcoin as payment unless they lacked the tech to do so. That sounds simple, but in practice, most small shops still refused. Why? Because Bitcoin’s price swings made it risky. A vendor could accept $10 worth of Bitcoin, only to see it drop to $8 by lunchtime. The government tried to fix this with the Chivo Wallet, a state-backed app that automatically converted Bitcoin to dollars at the point of sale. But the app was buggy, full of scams, and forced on public workers. People got paid in Bitcoin, then had to convert it back to dollars just to buy groceries.
Then came the El Salvador crypto, the broader ecosystem of cryptocurrency activity, infrastructure, and policy that developed after Bitcoin became legal tender. Also known as Salvadoran crypto adoption, it included Bitcoin bonds, mining projects using volcanic energy, and a push to become a crypto tourism hub. The country even issued $1 billion in Bitcoin-backed bonds. But investors stayed away. Mining never took off the way they hoped—volcanic heat was promising, but the equipment was expensive, and the grid couldn’t handle it. Tourism? A few Bitcoin-themed bars popped up in San Salvador, but most visitors still paid in dollars.
Today, Bitcoin El Salvador is a case study in ambition vs. reality. It didn’t make everyone rich. It didn’t fix the banking gap. And it didn’t stop the IMF from warning the country about financial risks. But it did something bigger: it proved a nation could try this. Other countries watched. Some copied the idea, like the Central African Republic—then quickly backtracked. Others, like Argentina and Nigeria, quietly explored Bitcoin as a workaround for unstable local currencies.
What’s left now? A mixed legacy. The Chivo Wallet is still there, but most people use it only for government payments. Bitcoin’s price has risen since 2021, so the government’s Bitcoin holdings are worth more than they paid. But ordinary citizens? Few use it daily. The real winners? The crypto exchanges and wallet providers who got access to a whole new market. The losers? The people who believed the hype and lost money on bad advice.
Below, you’ll find real stories, deep dives, and hard facts about what happened after Bitcoin became legal tender—not the PR version, but the messy, complicated truth. From scams targeting Salvadorans to how the U.S. dollar still runs the economy, these posts cut through the noise. You’ll learn who actually benefited, what went wrong, and why this experiment still matters—even if you’re not in El Salvador.
Chivo Wallet was launched with Bitcoin as legal tender in El Salvador in 2021, offering free transfers and $30 incentives. By 2025, Bitcoin lost its legal status due to volatility and IMF pressure. The wallet still exists, but usage is now voluntary.