El Salvador Bitcoin: How the Country Went All-In on Crypto

When El Salvador Bitcoin, the first national adoption of Bitcoin as legal tender. Also known as Bitcoin legal tender, it was a bold move that turned a small Central American nation into the center of a global crypto experiment. In September 2021, El Salvador became the first country to make Bitcoin legal tender alongside the U.S. dollar. Not a trial. Not a pilot. Not a side project. The law required businesses to accept Bitcoin for goods and services, and the government even launched a digital wallet—Chivo—to push it forward. This wasn’t just about technology. It was about survival, sovereignty, and rewriting the rules of money for people who had been locked out of traditional banking.

The move didn’t come out of nowhere. Over 70% of Salvadorans were unbanked or underbanked. Remittances from abroad—mostly from the U.S.—made up nearly 20% of the country’s GDP. Sending money home used to cost 10-20% in fees. With Bitcoin, those fees dropped to pennies. The government promised financial freedom. Critics called it a risky gamble. But for millions of families, it was the first real shot at cheaper, faster money. Around the same time, Chivo wallet, the official government-backed Bitcoin wallet launched to drive adoption. Also known as Chivo app, it offered $30 in free Bitcoin to every user who signed up, and even installed Bitcoin ATMs across the country. The rollout was messy. Power outages, app crashes, and confusion over how to use it left many users frustrated. But the idea stuck: money shouldn’t need a bank to move.

What happened next? The world watched. Other countries looked at El Salvador and wondered: Is this the future? Or a cautionary tale? Bitcoin’s price swung wildly, and the government’s $150 million Bitcoin purchases lost value. Protests broke out. The IMF warned of financial risks. But here’s the twist: adoption didn’t vanish. Even as headlines screamed failure, Salvadorans kept using Bitcoin for daily transactions—especially in border towns and among younger users. And while the Chivo wallet’s popularity faded, Bitcoin itself didn’t. It became part of the landscape. Tourists now pay for coffee in BTC. Fishermen get paid in crypto. Small shops display Bitcoin QR codes beside dollar signs.

El Salvador didn’t just adopt a cryptocurrency. It tested whether money could be decentralized, public, and owned by the people—not just banks and governments. The experiment is far from over. Some call it a flop. Others say it’s the only real-world proof that crypto can work at a national scale. Either way, it changed the conversation. And if you’re wondering whether Bitcoin can ever be more than a speculative asset, El Salvador’s story gives you the clearest answer so far.

Below, you’ll find real stories, deep dives, and hard facts about what happened after El Salvador said yes to Bitcoin—and how it’s still shaping crypto adoption around the world.