Five years after El Salvador’s Congress passed the world’s first “Bitcoin Law,” the country is still adding to its bitcoin pile, even after a major policy reversal tied to an IMF loan.
On June 8, 2021, lawmakers approved the law 62-to-22. The vote gave bitcoin legal tender status, a first for any country. Five years later, El Salvador holds 7,677 BTC worth about $480 million, according to Bitcoin Magazine. The government continues to accumulate and keep its dollar-cost averaging approach in place.
The buy strategy kept running
Bitcoin Magazine reports that in November 2022 President Nayib Bukele announced a policy of buying one bitcoin per day. Since then, the buying program has persisted.
The pace stayed high. In the 12 months since June 2025, El Salvador added more than 1,600 BTC. Bitcoin Magazine also highlights a “tactical purchase” of over 1,000 BTC in a single week during a November market dip.
Even as the flagship legal tender framing softened, the underlying behavior did not. As of early 2026, the Bitcoin Office described the country as going “all in” on both bitcoin and artificial intelligence, Bitcoin Magazine reports. Then the government hit a wall it could not ignore.
IMF conditions forced a legal tender reversal
In January 2025, Bukele’s administration stripped bitcoin of its mandatory legal tender status. Bitcoin Magazine links the move to a $1.4 billion IMF loan package.
The practical effect is straightforward. Businesses are no longer legally required to accept bitcoin, and the government-issued Chivo wallet, which Bitcoin Magazine describes as the centerpiece of the original pitch, is being phased out.
But the state did not pivot out of its own holdings. Bitcoin Magazine says the government has not sold a single coin from its treasury. It also notes that BTC can still be used as a currency for those who want to use it.
That leaves El Salvador in a different posture than 2021. Legal obligation dropped. Sovereign ownership and continued accumulation did not.
Tax breaks and the remittance reality check
El Salvador pairs its bitcoin stance with tax policy designed to attract external capital. Bitcoin Magazine reports the country offers no capital gains tax on bitcoin or cryptocurrency transactions. The same source says the government doubled down on that approach in early 2026 to court foreign investors.
Meanwhile, the “Bitcoin City” and bond pitch are still in the orbit. Bitcoin Magazine cites plans for a “Volcano Bond” backed by bitcoin and a proposed Bitcoin City powered by geothermal energy.
The remittance story, however, has under-delivered. Bitcoin Magazine says the remittance case Bukele used to sell the law to the public has not materialized at scale.
The numbers Bitcoin Magazine provides are stark:
- El Salvador remains remittance dependent. Personal transfers from abroad equal roughly 24% of GDP.
- In Q1 2026, remittances totaled $2.43 billion.
- Crypto accounted for $17.38 million of that total, or 0.71%.
In other words, bitcoin’s legal tender status did not translate into large-scale remittance usage, at least so far. The government can still buy bitcoin daily, but remittances have not become a dominant channel for crypto in the way the original political argument implied.
What to watch next
Bitcoin Magazine frames the current phase as a bet that survives regulatory trimming. El Salvador reduced mandatory acceptance and began phasing out Chivo after IMF-linked conditions.
Yet it kept buying. It kept holding. It kept promoting bitcoin-themed initiatives and tax advantages.
The next deadline is not a new headline law. It is the continued test of whether bitcoin adoption grows without legal compulsion, and whether projects like “Volcano Bond” and Bitcoin City move from announcements to execution.
Key facts (from Bitcoin Magazine)
| Topic | What Bitcoin Magazine reports | Why it matters |
|---|---|---|
| Bitcoin Law vote date | June 8, 2021, 62-to-22 | Legal tender came first, not speculation |
| Government holdings | 7,677 BTC, about $480 million | Confirms state accumulation |
| Buy policy | One bitcoin per day since November 2022 | Indicates DCA behavior kept running |
| Last 12 months buying | Added 1,600+ BTC since June 2025 | Shows pace stayed elevated |
| Large dip purchase | Over 1,000 BTC in one week during a November dip | Points to tactical execution |
| IMF-linked rollback | January 2025 removed mandatory legal tender | Limits compulsory acceptance |
| Chivo wallet status | Being phased out | Reduces state-sponsored on-ramp |
| Treasury sales | Government has not sold any BTC | Contradicts any “exit” narrative |
| Taxes | No capital gains tax on bitcoin or crypto transactions | Aims to attract investors |
| Remittance usage | Crypto was 0.71% of $2.43B remittances in Q1 2026 | Suggests remittance conversion lag |