El Salvador marked the fifth anniversary of its Bitcoin Law on June 8, holding 7,677 BTC worth approximately $480 million in state reserves. The milestone follows a late 2024 agreement with the IMF for a $1.4 billion loan that required the country to soften its Bitcoin policy, making business acceptance of BTC voluntary and reducing state involvement in certain infrastructure projects. El Salvador became the first nation to grant Bitcoin legal tender status on June 8, 2021, alongside the U.S. dollar, which has served as the country's main currency since 2001.
El Salvador Holds 7,677 BTC on Bitcoin Law Fifth Anniversary
President Nayib Bukele's Legislative Assembly passed the Bitcoin Law on June 8, 2021, granting BTC legal tender status alongside the U.S. dollar. The government launched the state-run Chivo Wallet, installed Bitcoin ATMs, and promoted Lightning Network payments to reduce remittance costs. As of 2026, state wallet addresses hold 7,677 BTC worth approximately $480 million.
IMF Loan Agreement Prompts Bitcoin Policy Adjustments in Late 2024
The IMF raised concerns about BTC volatility, fiscal risk, and the mandatory acceptance requirement for businesses. In late 2024, El Salvador agreed to soften its Bitcoin policy as part of a $1.4 billion IMF loan agreement. Business acceptance of BTC became voluntary, and the state reduced its direct involvement in certain Bitcoin infrastructure projects. Despite the concessions, El Salvador continued accumulating Bitcoin.
Tether Obtains Digital Asset License in El Salvador in January 2025
Stablecoin issuer Tether obtained a digital asset service provider license in El Salvador in January 2025. Tether CEO Paolo Ardoino called El Salvador a "beacon of innovation in the digital asset space" in a press release. Ardoino's statement followed Tether's decision to relocate part of its business operations to El Salvador.
In July 2025, Bukele and Pakistan Crypto Council Chairman Bilal bin Saqib signed a Letter of Intent on cooperation in state-level Bitcoin adoption and financial inclusion. Bhutan has taken a different path, mining BTC through its state investment arm Druk Holding & Investments using hydropower rather than granting legal tender status.
El Salvador Plans Bitcoin Diploma 2.0 Launch in 2026
El Salvador plans to launch Bitcoin Diploma 2.0 in 2026, an updated state curriculum covering cryptocurrency and financial technology basics in public schools. The program's reach and student uptake will test whether education can sustain public engagement with BTC after the payments mandate was removed.
FAQ
What did El Salvador announce on the fifth anniversary of its Bitcoin Law?
El Salvador marked the fifth anniversary of its Bitcoin Law on June 8, holding 7,677 BTC worth approximately $480 million in state reserves. The country became the first nation to grant Bitcoin legal tender status on June 8, 2021.
Why did El Salvador soften its Bitcoin policy in late 2024?
El Salvador agreed to soften its Bitcoin policy in late 2024 as part of a $1.4 billion IMF loan agreement. The IMF raised concerns about BTC volatility, fiscal risk, and the mandatory acceptance requirement for businesses. Business acceptance of BTC became voluntary, and the state reduced its direct involvement in certain Bitcoin infrastructure projects.
What is Bitcoin Diploma 2.0 in El Salvador?
El Salvador plans to launch Bitcoin Diploma 2.0 in 2026, an updated state curriculum covering cryptocurrency and financial technology basics in public schools.
