El Salvador’s Bitcoin Anniversary
In a notable observance, El Salvador’s Bitcoin Office marked the anniversary of its landmark legal tender law for Bitcoin, which took effect back in September 2021. As a part of the celebrations, the office underscored the country’s Bitcoin strategic reserve, now standing at 6,313 BTC, which equates to over $702 million.
New Developments in Bitcoin Legislation
Additionally, they announced a new banking law that permits BTC investment banks to cater to well-heeled investors, as detailed in a post on social media platform X this Sunday. The government agency also reported that approximately 80,000 public employees have achieved certification in Bitcoin by 2025, underscoring the nation’s commitment to Bitcoin and AI educational initiatives.
Shifts in Bitcoin Policy
Although El Salvador initially forged a groundbreaking path as the first nation to embrace Bitcoin as legal tender, recent developments show a shift in its stance following an agreement with the International Monetary Fund (IMF). The nation’s four-year journey with Bitcoin has generated divisive opinions within the crypto community, reflecting the complexity of central bank policies in contrast to the dream of decentralized currency.
In January, El Salvador’s legislature took measures to repeal the Bitcoin legal tender law and committed to halt all public sector Bitcoin purchases as part of a $1.4 billion loan arrangement with the IMF. Furthermore, the government has begun scaling back support for the Chivo Bitcoin wallet, which has struggled to gain traction among Salvadoran citizens.
Concerns from the Crypto Community
A report from the IMF, released in July, indicated that El Salvador had not bought any new Bitcoin since entering into the loan agreement in December 2024, causing unease within the cryptocurrency sector. This report also included a formal declaration from Douglas Pablo Rodríguez Fuentes, the president of El Salvador’s central bank, alongside Finance Minister Jerson Rogelio Posada Molina, confirming stability in the government’s BTC holdings.
Critics, including various Bitcoin proponents and NGOs, have voiced concerns regarding the administration’s Bitcoin strategies, arguing that these policies primarily benefit the government rather than the local populace. They advocate for more comprehensive educational efforts aimed at enabling the general public to reap the advantages of Bitcoin, thereby enhancing overall adoption in this Central American nation.
