Bitcoin News

Story: El Salvador’s Bitcoin Law Hits Five Years With 1% Remittance Use and an IMF Deal

By Jean-Luc Maracon

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Financial Inclusion That Never Really Arrived. The core promise was inclusion. Get the unbanked population onto a digital financial system, cut…

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The IMF Deal and a Quieter Bitcoin Law. The retreat came officially in 2024. El Salvador struck a $1.

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On the Ground: A Different Picture. Walk through San Salvador and the gap between policy and practice is pretty clear.

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Five years in. That's where El Salvador stands with Bitcoin, and the picture is messy.

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When President Nayib Bukele announced the Bitcoin legal tender move at a Miami conference in 2021, the pitch was straightforward: financial inclusion, foreign investment, a new…

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The core promise was inclusion. Get the unbanked population onto a digital financial system, cut remittance costs, build something new. It didn't play out that way.

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Dr. Tobias Boos from the University of Vienna found that Bitcoin adopters in El Salvador were mostly young, educated, and already banked.

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Remittances are probably the clearest sign of how limited the impact has been. Remittances make up a big chunk of El Salvador's GDP.

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Not really the revolution anyone advertised.

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The retreat came officially in 2024. El Salvador struck a $1.4 billion agreement with the International Monetary Fund, and part of that deal meant pulling back on Bitcoin's role…

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That's a hard line to read five years after the fanfare.

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More context: Bitcoin Policy Institute Pushes AI Giants to Give Bitcoin Coders First Look at Frontier Models

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Bukele's administration didn't disappear from the Bitcoin conversation, though. His leadership stayed tied to the narrative, even as the economic argument weakened.

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Walk through San Salvador and the gap between policy and practice is pretty clear. Reports from on-the-ground visits found that only a small fraction of shops readily accepted…

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But there are pockets where it works. Bitcoin Beach in El Zonte is the most cited example — a grassroots project that actually predates the national experiment.

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