Five years ago yesterday, El Salvador’s Congress voted 62-22 to pass the country’s first Bitcoin Law, making the small Central American country the first country in the world to legalize bitcoin.
The date was June 8, 2021. After half a year, the government they hold 7,677 BTC worth about $480 million – and still accumulating.
The country has run a policy of devaluing the dollar since President Nayib Bukele he announced plan to buy one bitcoin a day in November 2022. In the 12 months from June 2025, El Salvador added more than 1,600 BTC to its stack, including smart purchase of more than 1,000 BTC in one week during the November market.
At the beginning of 2026, the Bitcoin office announced that the country is going “all in” on both bitcoin and artificial intelligence.
That decision survived a major change in policy. In January 2025, the management of Bukele to undress bitcoin about its legal status as you can make the IMF loan of $ 1.4 billion. Businesses are no longer legally required to accept it, and the government-issued Chivo wallet – at the heart of Bukele’s startup – is being phased out.
But the government has not sold a single coin from its treasury and BTC can still be used as a currency for those who want to use it.
El Salvador: No tax on bitcoin
El Salvador does not impose capital gains tax on bitcoin or cryptocurrency transactions, a fact that the government challenged as early as 2026 in a foreign court. The country is also planning a “Volcano Bond” behind with bitcoin and the proposed Bitcoin City powered by geothermal energy.
The issue of remittances that Bukele used to sell laws to the public has yet to reach a high level. El Salvador is one of the countries most dependent on remittances in the world – remittances alike. approximately 24 percent of GDP, and Q1 2026 totaling $2.43 billion. Crypto had only $17.38 million of that number, or 0.71 percent of the number.
