In 2021, El Salvador made history as the first country to adopt Bitcoin as legal tender. This bold move aimed to reduce reliance on the US dollar, enhance financial inclusion, and attract foreign investment.
Bitcoin also offered a cheaper, faster way to handle remittances, a key part of the country’s economy. While the decision faced criticism over Bitcoin’s volatility and environmental concerns, it positioned El Salvador as a pioneering force in the global crypto landscape.
El Salvador’s Ongoing Bitcoin Strategy
El Salvador recently purchased two more Bitcoins on February 1st, continuing its daily acquisition strategy aimed at building a national Bitcoin reserve.
🚨 NEW: El Salvador ramps up its Bitcoin accumulation, adding 2 BTC in a single day. pic.twitter.com/AziNQSxpGr
— Cointelegraph (@Cointelegraph) February 2, 2025
While the government typically buys one Bitcoin per day, it has ramped up purchases, acquiring over 50 Bitcoins last month alone. The country now holds a total of 6,055 Bitcoins, valued at more than $612 million.
This aggressive accumulation comes despite regulatory adjustments linked to a $1.4 billion loan deal with the International Monetary Fund (IMF).
As part of the agreement, El Salvador modified its Bitcoin policy, making acceptance optional for businesses, limiting government involvement in the crypto sector, and privatising the Chivo wallet.
Interestingly, just a day after finalising the IMF deal, the government bought 11 more Bitcoins worth over $1 million, signalling its unwavering commitment to Bitcoin adoption.
Stacy Herbert, Director of El Salvador’s National Bitcoin Office, hinted in December that purchases might accelerate. This proved true when the office bought another 12 Bitcoins on January 19th.
A government spokesperson described El Salvador’s Bitcoin initiative as “the biggest rebrand in history” and a testament to its national strategy. Despite global scrutiny, the country’s Bitcoin-focused approach continues to draw admiration from the crypto community and industry leaders.
Global Impact: Small Nations Leading the Way
El Salvador’s Bitcoin strategy has captured the attention of global crypto enthusiasts, with major firms like Fidelity Digital Assets praising its bold approach. In its 2025 Look Ahead report, Fidelity suggested that El Salvador’s adoption could inspire other nations to follow suit.
Analysts believe that as the risks of not holding Bitcoin become more apparent, larger countries might begin accumulating Bitcoin to avoid falling behind.
President Nayib Bukele’s efforts have even attracted praise from high-profile figures like Elon Musk, who called El Salvador’s Bitcoin investments “impressive.” However, while El Salvador leads in Bitcoin adoption, other countries are advancing their crypto infrastructure.
Poland, for example, has recently surged ahead in expanding Bitcoin ATMs. As of January 27, Poland installed 10 new ATMs, increasing its total to 219 active machines—surpassing El Salvador to become the fifth-largest crypto ATM network globally, behind the US, Canada, Australia, and Spain.
Poland’s rapid growth, with 24 new ATMs added since October 2024, highlights the evolving global landscape. Countries like Canada, Spain, and Australia are also expanding their crypto infrastructure.
While El Salvador remains a trailblazer in Bitcoin adoption, the momentum is spreading, with other nations embracing the potential of crypto in diverse ways.
Conclusion
El Salvador’s relentless Bitcoin acquisitions, even amid regulatory shifts and IMF agreements, showcase its long-term vision for integrating crypto into its economy.
As other countries ramp up their crypto infrastructure, El Salvador’s bold experiment may prove to be a catalyst for global Bitcoin adoption. Whether through strategic reserves or expanding ATM networks, the race to embrace crypto is undeniably gaining pace worldwide.
Editor: Lydicius