El Salvador made headlines in September 2021 when it became the first country in the world to make the virtual currency Bitcoin legal tender.
However, on 29 January 2025, the Bitcoin Act was amended and Bitcoin will no longer be legal tender in El Salvador. According to the Reuters report, “El Salvador’s Congress swiftly approved a bill sent just minutes earlier by President Nayib Bukele to amend its bitcoin law to comply with a deal with a key international lender to make acceptance of the cryptocurrency voluntary.”
Interestingly, El Salvador bought 11 more Bitcoins on 4 February 2025 to boost its BTC strategic reserve. Currently, the country holds 6067 BTC. It is valued at $616,049,642.
Bukele revealed that the country has purchased more than 20 Bitcoins in the last seven days.
— Nayib Bukele (@nayibbukele) February 4, 2025
JUST IN: El Salvador bought another 11 #bitcoin worth over $1.1 million for their strategic bitcoin reserve
pic.twitter.com/V6889gs2p2
— Bitcoin Magazine (@BitcoinMagazine) February 4, 2025
Is A Bold Experiment Coming To An End?
El Salvador’s initial adoption of Bitcoin was met with both praise and skepticism. Bukele championed the move as a way to modernize the country’s economy, attract foreign investment, and provide financial inclusion for millions of unbanked citizens.
The government even launched the Chivo Wallet, a state-backed digital wallet, and incentivized its use by offering $30 in Bitcoin to every citizen who signed up.
The government also initiated high-profile projects such as Bitcoin City, a futuristic metropolis powered by geothermal energy from volcanoes, and issued Bitcoin-backed bonds known as “Volcano Bonds.”
However, despite these ambitious initiatives, challenges emerged.
Additionally, surveys suggested that many Salvadorans were reluctant to adopt Bitcoin for everyday transactions, preferring to stick with cash or US dollars.
Explore: El Salvador Celebrates Bitcoin Milestone As President Bukele Highlights Millions In Gains
Tether Is Moving To El Salvador
Tether and El Salvador are embarking on a path that befits only true Bitcoin pioneers.
Recently, Tether announced it will relocate its headquarters to El Salvador. This strategic decision strongly endorses El Salvador as a growing crypto hub and an increasingly influential country in Central America. The country’s efforts, if anything, appear to be paying off.
Paolo Ardoino, the CEO of Tether, said the stablecoin issuer is moving to Central America after obtaining an operating license, which allows it to operate as a digital asset service provider.
This relocation is a key milestone for Tether. Since its launch, this is the first time Tether has established a physical headquarters, as it is effectively transitioning from its previous physical incorporation in the British Virgin Islands.
Explore: Tether is Moving to El Salvador: Here’s Everything To Know About Stablecoin Move to Bitcoin State
The post El Salvador Reportedly Revokes Bitcoin’s Status, But Continues Buying BTC appeared first on 99Bitcoins.
