El Salvador once positioned itself as a global leader in crypto adoption by becoming the first country to make Bitcoin legal tender. However, recent policy changes under an International Monetary Fund (IMF) loan agreement are raising concerns about whether this ambitious initiative is truly benefiting its citizens.
Bitcoin Is No Longer Legal Tender
In early 2025, El Salvador repealed Bitcoin’s legal tender status as part of the conditions for securing a new loan from the IMF. This shift has effectively paused state-led adoption efforts, according to Quentin Ehrenmann, general manager at the NGO My First Bitcoin.
“Since the government entered into this contract with the IMF, Bitcoin is no longer legal tender, and we haven’t seen any other effort to educate people,” Ehrenmann stated.
BTC Accumulation Without Public Benefit
Despite the removal of legal tender status, the government reportedly continues to accumulate Bitcoin, though the IMF agreement explicitly restricts new BTC purchases. This contradiction was highlighted in a recent IMF report, undermining transparency from official sources.
“The government, apparently, continues to accumulate Bitcoin, which is beneficial for the government — it’s not directly good for the people,” Ehrenmann added.
IMF Agreement Halts Bitcoin Integration
To comply with IMF terms, El Salvador’s public sector rolled back its involvement in Bitcoin projects, freezing infrastructure development, education campaigns, and merchant onboarding. This move has triggered criticism from Bitcoin advocates, who view it as a retreat from the country’s original vision of decentralized financial inclusion.
Limited Access and Education Still a Problem
Although some businesses still accept Bitcoin through services like IBEX Pay and the Lightning Network, adoption remains minimal. The lack of Bitcoin education has left many Salvadorans confused and unprepared to use the technology effectively.
“It’s faster than the credit card,” said one hostel employee — but only after being taught how to use it by a customer.
Conclusion
While El Salvador’s Bitcoin reserve remains a significant financial asset, the benefits are largely isolated from the everyday experience of the average citizen. Without legal support or educational initiatives, Bitcoin’s promise of financial empowerment in El Salvador risks fading into a missed opportunity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
We use cookies to personalize content and ads, provide social media features, and analyze our traffic. In accordance with GDPR/AVG and EU cookie regulations, data is processed only with your consent. We may share information about your use of our website with our social media, advertising, and analytics partners, and you can manage or withdraw your consent at any time. View more
Cookies settings
Accept
Privacy & Cookie policy
Privacy & Cookies policy
Cookies list
Cookie name
Active
Privacy Policy
At BitxJournal.com, we respect your privacy and are committed to protecting your personal data. This Privacy Policy explains how we collect, process, store, and protect personal information in accordance with the General Data Protection Regulation (GDPR) and AVG (EU privacy legislation).
1. Data Controller
BitxJournal.com acts as the data controller for all personal data processed through this website.
2. Personal Data We Collect
We may collect and process the following categories of data:
Personal Data
Name and email address (when you subscribe to newsletters or contact us)
Technical & Usage Data
IP address, browser type, operating system
Device information
Pages visited, referral sources, and interaction data
This data is collected via cookies, log files, and analytics technologies.
3. Legal Basis for Processing
We process personal data only when a lawful basis exists, including:
Consent – when you explicitly agree (e.g., cookies, newsletter sign-up)
Legitimate interest – to operate, secure, and improve our website
Legal obligation – when required by applicable laws
You may withdraw your consent at any time.
4. Purpose of Data Processing
Your data is processed for the following purposes:
Operating and maintaining the website
Improving content, usability, and performance
Sending newsletters or updates (only with consent)
Analyzing traffic and user behavior
Responding to inquiries or support requests
5. Cookies & Consent Management
We use cookies and similar technologies in compliance with EU Cookie Law.
Non-essential cookies are placed only after explicit user consent
Users may accept, reject, or manage cookie preferences at any time
Consent can be withdrawn without affecting prior lawful processing
Detailed cookie information is available in our Cookie Settings panel.
6. Third-Party Data Processing
We may share limited data with trusted third-party service providers, including:
Analytics providers (e.g., Google Analytics)
Advertising partners (for personalized or non-personalized ads)
These third parties act as data processors and process data only under contractual obligations compliant with GDPR/AVG.
7. International Data Transfers
Where data is transferred outside the European Economic Area (EEA), we ensure appropriate safeguards are in place, such as Standard Contractual Clauses (SCCs) or equivalent legal mechanisms.
8. Data Retention
We retain personal data only for as long as necessary to fulfill the purposes outlined in this policy or as required by law.
9. Data Security
We implement appropriate technical and organizational security measures to protect personal data against unauthorized access, alteration, disclosure, or destruction.
10. Your GDPR Rights
Under GDPR/AVG, you have the right to:
Access your personal data
Rectify inaccurate or incomplete data
Request data erasure (“right to be forgotten”)
Restrict or object to processing
Data portability
Withdraw consent at any time
Lodge a complaint with a supervisory authority
11. Changes to This Privacy Policy
We reserve the right to update this Privacy Policy at any time. Any changes will be posted on this page with a revised effective date.
12. Contact Information
For privacy-related inquiries or GDPR requests, contact:
