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What is the status of bitcoin in El Salvador?
El Salvador made bitcoin legal tender in 2021. Under reforms tied to a 2025 IMF loan programme, businesses no longer have to accept it, taxes are paid only in US dollars, and government purchases of bitcoin are limited during the programme.
What it means for you
A country adopting bitcoin does not make it accepted everywhere there, and the rules can change: since 2025, accepting bitcoin in El Salvador is a business's choice. The US dollar remains the currency taxes are paid in.
How it works
The IMF approved a 40-month Extended Fund Facility loan programme for El Salvador in February 2025. Its prior actions included legal reforms making acceptance of bitcoin by the private sector voluntary and ensuring tax payments are made only in US dollars. The programme also limits the government's bitcoin-related activity and purchases, and winds down public participation in the state's crypto wallet, Chivo.
Source: IMF: Executive Board approves new 40-month Extended Fund Facility arrangement for El Salvador (PR25/043) · checked 5 October 2026
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