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El Salvador has shaken the crypto world once again after the Salvadoran government officially revoked Bitcoin's legal tender status. The government also banned and halted purchases of Bitcoin using public funds.
In 2021, El Salvador was known as the first country to adopt Bitcoin and legalize it as legal tender. The decision to revoke Bitcoin's legal tender status came after the government signed a $1.4 billion loan agreement with the IMF, which included several conditions imposed by the IMF, including the revocation of Bitcoin as legal tender and the suspension of Bitcoin purchases using public funds.
As of September 2025, the Salvadoran government still holds at least 6,313 BTC held as national reserves. Since 2021, El Salvador has been experimenting with country-wide Bitcoin adoption, and after four years, the results have been mixed.
Pros and Cons
Pros: They consider the revocation of Bitcoin as legal tender not a failure but a strategy to maintain a balance between financial innovation and economic stability.
Cons: They think that Bitcoin adoption policies only benefit the government and investors but not the people.
In 2021, El Salvador was known as the first country to adopt Bitcoin and legalize it as legal tender. The decision to revoke Bitcoin's legal tender status came after the government signed a $1.4 billion loan agreement with the IMF, which included several conditions imposed by the IMF, including the revocation of Bitcoin as legal tender and the suspension of Bitcoin purchases using public funds.
As of September 2025, the Salvadoran government still holds at least 6,313 BTC held as national reserves. Since 2021, El Salvador has been experimenting with country-wide Bitcoin adoption, and after four years, the results have been mixed.
Pros and Cons
Pros: They consider the revocation of Bitcoin as legal tender not a failure but a strategy to maintain a balance between financial innovation and economic stability.
Cons: They think that Bitcoin adoption policies only benefit the government and investors but not the people.