Bitcoin’s role in El Salvador is shrinking, not expanding. While the government still holds BTC, its influence on everyday life has faded—and international pressure may be a key reason why.
According to Quentin Ehrenmann of the NGO My First Bitcoin, the country’s agreement with the IMF has led to a quiet retreat from earlier crypto ambitions. The rollback of Bitcoin’s legal tender status has halted state-led education programs, and there’s little sign of renewed public engagement. “Bitcoin benefits the state’s treasury, not its people,” Ehrenmann said.
Despite public claims of ongoing BTC accumulation, an IMF report confirmed that El Salvador agreed to stop buying more Bitcoin—directly contradicting the government’s own messaging.
Earlier this year, the country moved to scale back official involvement in Bitcoin to stay compliant with its IMF loan deal, raising questions about whether its bold experiment is losing steam.
Meanwhile, some locals and travelers continue to use Bitcoin for everyday purchases via the Lightning Network. In one 2023 visit, a journalist paid for a hostel room using BTC, but had to walk the staff through the process—highlighting that technical gaps and lack of education still pose barriers to adoption.
El Salvador’s crypto journey made global headlines in 2021. But now, under financial constraints and without public education initiatives, its future as a Bitcoin pioneer looks increasingly uncertain.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/el-salvadors-bitcoin-push-fades-under-imf-pressure/