Since becoming the first country to adopt Bitcoin as legal tender in 2021, El Salvador’s bold crypto experiment has drawn global attention. However, the impact of Bitcoin adoption on everyday Salvadorans remains limited. Recent developments, including conditions tied to a loan agreement with the International Monetary Fund (IMF), may further complicate the nation’s cryptocurrency ambitions.
IMF Loan Deal Puts Pressure on Bitcoin Policy
El Salvador’s agreement with the IMF includes a requirement to roll back key elements of its Bitcoin initiative. One major stipulation involves repealing Bitcoin’s legal tender status, a move that has hindered public education efforts and reduced state-driven Bitcoin adoption programs.
Quentin Ehrenmann, general manager of the nonprofit “My First Bitcoin,” told Reuters that the agreement has slowed down critical progress in educating the public about Bitcoin. His organization, which focuses on teaching Salvadorans how to use and understand cryptocurrency, noted that momentum has declined due to the policy shift.
Adding to the controversy, the IMF confirmed in a recent report that El Salvador had agreed not to purchase additional Bitcoin as part of the loan conditions. This directly contradicts claims made by the country’s official Bitcoin Office, which had previously stated the government was buying Bitcoin daily.
Public Sector Pullback and Education Gaps
In January 2025, El Salvador’s legislature took further steps to reduce government involvement in Bitcoin projects, aligning with the IMF’s terms. This legislative change has raised concerns about the sustainability and long-term success of the Bitcoin experiment.
During a 2023 visit, Cointelegraph observed that while some small businesses in El Salvador accept Bitcoin—mainly via the Lightning Network—broader adoption remains limited. The biggest obstacle, according to on-the-ground interviews, is a lack of education and digital literacy.
Despite early enthusiasm and international media coverage, Bitcoin usage in daily transactions among the Salvadoran public remains rare. Without strong educational initiatives or government-led support, crypto adoption may continue to stagnate.
