Bitcoin El Salvador: How the Country Made Bitcoin Legal Tender and What Happened Next

When Bitcoin El Salvador, the historic move by El Salvador to make Bitcoin legal tender alongside the U.S. dollar in 2021. Also known as Bitcoin adoption by a sovereign nation, it was the first time any country gave a cryptocurrency equal standing with its national currency. This wasn’t just a tech experiment—it was a bold economic gamble that shook up global finance. The government, led by President Nayib Bukele, believed Bitcoin could reduce remittance costs, bring the unbanked into the financial system, and attract investment. But what did that look like for everyday Salvadorans? And did it actually work?

The rollout came with the Chivo wallet, a government-backed mobile app designed to let people send, receive, and spend Bitcoin with instant conversions to dollars. Also known as Chivo digital wallet, it offered $30 in free Bitcoin to every citizen who signed up. But many users struggled with the app’s glitches, didn’t understand how to use Bitcoin, and found themselves stuck with volatile crypto instead of stable cash. Meanwhile, cryptocurrency government policy, the broader framework of how nations regulate or adopt digital assets. Also known as crypto regulation, it became a lightning rod for debate. The IMF warned of financial risks, while crypto advocates hailed it as a revolution. But behind the headlines, most Salvadorans kept using dollars for rent, groceries, and fuel.

What’s clear now is that Bitcoin El Salvador didn’t transform the economy overnight. Remittance fees dropped slightly, but not as much as promised. Bitcoin’s price swings made it harder for small businesses to price goods. Tourists sometimes used it, but locals rarely did. The country’s Bitcoin reserve has lost value, and the Chivo wallet is now mostly unused. Still, the move forced the world to pay attention. Countries from Nigeria to Argentina started asking: Could this work for us? And what happens when a small nation bets its future on crypto?

Below, you’ll find real stories and hard facts about how Bitcoin played out in El Salvador—the successes, the failures, and the lessons that still matter today. From government mandates to wallet failures, these posts cut through the hype and show what actually happened on the ground.