When a Nation Went Bitcoin: The Story of El Salvador’s Crypto Leap
In September 2021, the tiny Central American nation of El Salvador made history—becoming the first country in the world to adopt Bitcoin as legal tender. What began as a bold experiment under President Nayib Bukele quickly turned the global financial community on its head.
A Law That Shook the World
The “Bitcoin Law” passed on June 9, 2021, required every business in El Salvador to accept Bitcoin for goods and services. By September 7, Bitcoin officially became legal currency alongside the U.S. dollar. The government launched a digital wallet called Chivo, giving every citizen $30 in BTC as a welcome bonus.

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But when Bitcoin’s price plunged from $69,000 to under $20,000 in 2022, the nation’s holdings suffered heavy paper losses—sparking criticism and concern about fiscal responsibility.
A New Financial Identity?
Despite market swings, El Salvador doubled down. It announced “Bitcoin City”—a planned tax-free crypto-powered metropolis—and began issuing Bitcoin Bonds to raise funds. The country’s experiment remains a powerful symbol of sovereign crypto adoption, blending hope, risk, and the belief in decentralization.

The World Watches—and Reacts
Crypto enthusiasts called it revolutionary. Bitcoin advocates like Jack Dorsey and Michael Saylor praised the move. But global institutions like the IMF and World Bank issued warnings, citing volatility and economic risk. Protests erupted in San Salvador, with some citizens concerned about forced crypto usage.
Volatility Hits Hard
El Salvador bought thousands of BTC for its national treasury, often announced publicly by President Bukele on Twitter.