El Salvador has sharply narrowed its Bitcoin experiment, but it has not ended it. Under the IMF-supported program, businesses may choose whether to accept Bitcoin, taxes are payable only in U.S. dollars, public-sector Bitcoin activity and purchases are constrained, and the government has transferred majority ownership and control of its Chivo wallet to a private operator. The IMF’s October 1, 2026 review says no public resources have been used for Bitcoin accumulation; it does not say that Bitcoin use or government-held Bitcoin has disappeared.
What changed since El Salvador made Bitcoin legal tender?
In 2021, El Salvador adopted Bitcoin as legal tender alongside the U.S. dollar. The Legislative Assembly’s account of the law said the exchange rate against the dollar would be set by the market. The IMF describes the policy’s aims as expanding financial access, facilitating transactions, and making remittances easier, faster, and cheaper.
The current arrangement is materially different from that initial model. IMF program commitments and implementation updates describe a retreat across four separate areas: private acceptance, tax payments, public-sector activity, and control of the government-backed Chivo wallet. The IMF’s October 1, 2026 review is the latest update cited here.
| Area | 2021 experiment | Scaled-back arrangement |
|---|---|---|
| Private payments | Bitcoin was adopted as legal tender alongside the U.S. dollar. | Private-sector acceptance is voluntary under legal reforms described by the IMF. [IMF Country Report No. 25/58; IMF EFF FAQ] |
| Taxes | Bitcoin was part of the legal-tender framework. | Taxes are payable only in U.S. dollars under the program terms. [IMF Country Report No. 25/58; IMF EFF FAQ] |
| Public finances | The government promoted Bitcoin use as part of the national experiment. | Public-sector Bitcoin-related activity, transactions, and purchases are confined under the program. The IMF said in its October 1, 2026 review that no public resources had been used for Bitcoin accumulation. [IMF, October 1, 2026 review] |
| Chivo wallet | The government had a role in the state-backed wallet. | The IMF reported a transfer of majority ownership and control to a private operator in its October 1, 2026 review; it did not report that Chivo itself had ceased to exist. [IMF, October 1, 2026 review] |
Is Bitcoin still legal tender, and can businesses accept it?
The IMF’s program materials describe legal reforms that make private-sector acceptance voluntary. That means businesses are not required to accept Bitcoin under the arrangement described by the IMF; it does not mean private Bitcoin payments are banned.
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The available program sources establish this policy direction, but do not provide the amended law as printed in El Salvador’s official gazette. For that reason, this article does not state exact statutory clause wording or an unverified effective date. The Legislative Assembly’s background account of the original law is available here.
Can people pay taxes in Bitcoin?
No. The IMF program terms specify that taxes are payable only in U.S. dollars. This is a distinct restriction from the voluntary-acceptance rule for private businesses: the tax rule concerns payments to the state, not whether a merchant may accept Bitcoin from a customer.
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Did El Salvador stop buying Bitcoin?
The IMF’s October 1, 2026 review says no public resources have been used for Bitcoin accumulation. It also describes limits on public-sector Bitcoin-related economic activity, transactions, and purchases. Those statements do not establish that the government holds no Bitcoin, that all earlier holdings have been sold, or that every Bitcoin-related activity has ended.
Why did the experiment lose momentum?
The IMF’s 2025 country report provides two relevant indicators against the experiment’s stated goals. It says official data showed that 1.2 percent of remittances were transferred using a crypto wallet. That figure concerns remittances using a crypto wallet—not all Bitcoin use, all remittances, or the share of people who own Bitcoin.
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The same report says Bitcoin adoption had not produced visible improvements in financial inclusion. These are the IMF’s assessments, not proof that no individual or business benefited. They do, however, show why the policy’s original promises of broader financial access and easier remittances should be distinguished from demonstrated national results. See the IMF’s 2025 Article IV and first EFF review and its Selected Issues report.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains unresolved?
The retreat has not removed the need to account for existing public crypto holdings or oversee the wider framework. The IMF lists transparency and disclosure of public crypto holdings, regulatory and supervisory frameworks, and governance improvements among continuing priorities. That leaves an important distinction: limits on new public accumulation and the transfer of Chivo control are changes in policy and management, not a complete accounting of what the government may still hold or how every part of the system is supervised.
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