El Salvador Bitcoin: How the Country Bet Everything on Crypto

When El Salvador Bitcoin, the first nation to make Bitcoin legal tender. Also known as Bitcoin as state currency, it sparked a global debate on whether crypto can replace traditional money. In September 2021, El Salvador didn’t just experiment with Bitcoin—it made it law. Every citizen was expected to use it for payments, taxes, and even buying coffee. This wasn’t a pilot program. It was a full-on national reboot.

The move was led by President Nayib Bukele, who framed it as a way to cut remittance fees, bank the unbanked, and attract tech investment. But behind the headlines were real problems: power outages killed Bitcoin transactions, people didn’t trust it, and the government’s Chivo wallet kept crashing. Bitcoin legal tender, a policy where a sovereign state grants Bitcoin equal status with its national currency became a lightning rod—for supporters who saw financial freedom, and critics who saw a risky gamble. Meanwhile, the El Salvador crypto, the broader ecosystem of blockchain projects, exchanges, and mining operations enabled by the Bitcoin law grew quietly, with mining farms popping up near volcanoes, using geothermal energy to power rigs.

What happened next? Bitcoin’s price crashed. The IMF warned of financial instability. The World Bank refused to help build Bitcoin infrastructure. Yet, El Salvador didn’t back down. They kept buying Bitcoin, even during dips. And while most citizens still use dollars, the government’s Bitcoin wallet now holds over 2,300 coins. That’s not a fortune—it’s a statement. This isn’t about wealth. It’s about sovereignty. It’s about proving that a small country can challenge the global financial system.

What you’ll find below isn’t just news about El Salvador. It’s the full picture: the failed apps, the hidden mining deals, the people who lost money, and the ones who still believe. You’ll see how this tiny nation became the most extreme test case for crypto’s real-world potential—and why what happens there matters to every crypto holder, everywhere.