El Salvador made global headlines in 2021 when it became the first country to adopt Bitcoin as legal tender under President Nayib Bukele’s leadership. The move earned praise from Bitcoin maximalists worldwide and positioned the nation as a testbed for large-scale crypto adoption.
But as of mid-2025, that bold vision appears to be fading—and fast.
El Salvador’s Bitcoin Accumulation Strategy
On November 16, 2022, Bukele announced El Salvador would begin buying 1 Bitcoin per day. Around the same time, the country set up a National Bitcoin Office to coordinate crypto initiatives. These developments, along with BTC’s legal status, signaled the government’s deep commitment to Bitcoin adoption.
Bukele’s policies—pro-crypto and anti-establishment—resonated with many Salvadorans, helping him secure a historic re-election in February 2024.
IMF Bailout Exposes BTC Slowdown
Despite its revolutionary image, El Salvador’s economy struggled under mounting debt and inflation. To stabilize finances, the government turned to the International Monetary Fund (IMF), which approved a $1.4 billion Extended Fund Facility in February 2025.
However, the IMF made one thing clear: El Salvador must limit public-sector Bitcoin activity, including BTC purchases and transactions. The government publicly pushed back, stating it would continue buying Bitcoin—claims echoed across official social media.
But a July 15, 2025 IMF report told a different story.
El Salvador Hasn’t Bought Bitcoin Since December 2024
According to the IMF, El Salvador hasn’t purchased any new Bitcoin since December 2024—the same month IMF talks concluded. The report clarified that recent wallet activity was merely internal transfers, not fresh acquisitions.
Even more telling, Bitcoin quietly lost its legal tender status in January 2025, signaling a strategic backpedal.
What’s Next? Privatization and Policy Reversal
- Chivo Wallet, the state-sponsored Bitcoin wallet, will reportedly be privatized by the end of July 2025.
- Rumors also suggest El Salvador may dissolve Fidebitcoin, the government-run Bitcoin trust.
These moves signal a clear shift: compliance with IMF terms now takes priority over Bitcoin experimentation.
While El Salvador’s leadership once stood firm on Bitcoin adoption, recent developments indicate a pivot toward economic pragmatism. The IMF bailout has reshaped national priorities—and Bitcoin is no longer center stage.
Whether this marks the end or a pause in El Salvador’s Bitcoin journey remains to be seen.
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FAQs
According to a July 2025 IMF report, El Salvador has not purchased new Bitcoin since December 2024, despite earlier government claims of daily acquisitions.
The state-sponsored Chivo Wallet is reportedly set to be privatized by the end of July 2025, signaling a reduction in government involvement in crypto.
Fidebitcoin (The Salvadoran Trust for the Adoption of Bitcoin) was a government-run trust fund in El Salvador, established to support Bitcoin adoption and facilitate conversions between Bitcoin and USD for users of the Chivo Wallet. It is reportedly being dissolved as part of IMF bailout conditions.
Rumors suggest El Salvador may dissolve Fidebitcoin, the government-run Bitcoin trust, as part of its shift towards IMF compliance.
