The world’s first Bitcoin experiment is still alive, but IMF pressure and policy shifts have reshaped things.
Four years on from its bold Bitcoin [BTC] experiment, El Salvador is celebrating the anniversary with quieter plans.
The country still boasts a hefty $700 million BTC reserve, but its early dreams of reshaping global finance have given way to pragmatism.
Under pressure from the IMF, policies have been pared back, leaving a mix of optimism and unanswered questions about whether national-level crypto adoption can truly endure.
Bitcoin Day at El Salvador
In a post on X (formerly Twitter), the Bitcoin Office of El Salvador announced that the government now holds 6,313 BTC (worth more than $700 million at press time).
Alongside, the office also announced the launch of a new law that enabled Bitcoin investment banks to cater to “sophisticated” investors.
The post pointed to education wins, with 80,000 public servants certified in Bitcoin, the launch of BTC banks and new public programs combining the king coin and AI.
Yet, celebrations come with a backdrop of scaled-back policies, as El Salvador’s government adjusts its Bitcoin ambitions under pressure from the International Monetary Fund (IMF).
IMF deal forces a BTC rethink
As part of their deal with the IMF, El Salvador lawmakers repealed the Bitcoin legal tender law and pledged not to buy additional BTC with public funds.
The agreement also required scaling back support for the Chivo wallet, which had already seen lukewarm adoption.
An IMF report published in July confirmed El Salvador has not purchased new Bitcoin since December 2024, with officials reiterating in a letter of intent that the country’s BTC reserves remain unchanged.
The move brought about criticism from Bitcoin advocates and NGOs, who argue the policies benefit the state but leave citizens behind.
The four years gone by
Since 2021, El Salvador’s Bitcoin experiment has gone through cautious evolution.
The government built a $700 million BTC reserve, passed pioneering laws like the Digital Asset Issuance Law and the Investment Banking Law.
They also introduced education programs that trained tens of thousands — from school children to public servants.
These steps reshaped the country’s image from a debt-ridden economy to a Bitcoin pioneer with global visibility. At the same time, IMF pressures forced policy rollbacks.
Four years on, El Salvador’s Bitcoin story is a test case that’s still unfolding… on the world stage.
