Five years ago, El Salvador became the first country in the world to adopt Bitcoin as legal tender. The Bitcoin Law took effect on September 7, 2021, requiring all merchants to accept the cryptocurrency. Under pressure from the International Monetary Fund, which conditioned a $1.4 billion loan on policy changes, the mandatory acceptance rule was abolished by early 2025. Crypto-settled remittances represented only 0.7% of total remittance volume in the first half of 2026. The Chivo digital wallet, launched with a $30 bonus, saw an initial surge followed by a sharp decline. Despite this rollback, the Salvadoran government still holds between 7,400 and 7,700 BTC, valued at approximately $480 to $500 million as of mid-2026.
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