Understand the implications of Bitcoin's downfall in El Salvador. Learn about the failed economic bet and its impact on the country's financial stability.
The reform eliminated the word “currency” when referring to bitcoin, but says it is “legal tender.” Despite the lack of clarity, it lifts, as required by the IMF, the obligation to accept it in transactions or debt payments, a key condition for it to be “legal tender,” according to economic analysts. With the change, “if someone owes you money and wants to pay you in bitcoin, you can refuse to be paid in bitcoin, but you cannot refuse if it’s legal tender,” economist Carlos Acevedo explained.
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A recent survey by the Central American University (UCA) revealed that 92% of Salvadorans did not use bitcoin in their transactions in 2024.
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“I used it and didn’t like it… Very complicated and risky. This is not for an employee who barely gets by on their salary,” Juana Henríquez, a 55-year-old nurse, said, saying she had tried to make some profit and instead lost money.
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