Is bitcoin still legal tender in El Salvador?

Bitcoin is still legal in El Salvador, but it no longer works like the official currency it was meant to be in 2021. The amended Bitcoin Law still describes it as legal tender, yet as of October 2026 nobody has to accept it, taxes are paid only in US dollars, and only private people and companies may take it as payment.

What did the 2021 El Salvador bitcoin law do?

The Ley Bitcoin, Legislative Decree 57, was approved in June 2021 and took effect in September 2021. It made El Salvador the first country to adopt bitcoin as legal tender alongside the US dollar. In its original form, Article 7 required every business to accept bitcoin when a customer offered it, Article 4 let people pay taxes in bitcoin, and the state had to provide a way to convert bitcoin to dollars instantly.

Is bitcoin still legal tender in El Salvador?

On paper the word remains, but the obligation is gone. The Legislative Assembly passed Decree 199 on January 29, 2025, and it was published the next day. In the amended text, Article 1 still regulates bitcoin as legal tender, but adds that acceptance is voluntary and limited to individuals and wholly private companies. Article 7 now says only those private parties may accept bitcoin as payment. Articles 4, 8 and 9, on tax payments and state-run conversion, were repealed.

That is why sources describe it differently. The news agency AFP says the reform removed bitcoin's status as mandatory legal tender, while a government official told EFE that bitcoin remains legal tender.

Why did El Salvador change its bitcoin law?

The change was a condition of a loan. In February 2025 the International Monetary Fund approved a 40-month arrangement worth about $1.4 billion. The IMF said the program makes private acceptance of bitcoin voluntary, keeps tax payments in dollars and limits the government's involvement in bitcoin, including purchases. In September 2026 the IMF said no public resources had been used to accumulate bitcoin and that the government's electronic wallet had been handed to a private operator, AFP reported. The background on legal tender is in is cryptocurrency real money.

Is crypto legal in El Salvador beyond bitcoin?

Yes. A Digital Assets Issuance Law took effect on February 1, 2023. Issuers, certifiers and service providers must be registered with the CNAD, which can authorize, suspend or cancel registrations, according to the US International Trade Administration. The law also offers tax exemptions for some digital asset activity.

So does El Salvador use bitcoin? It can still be used wherever a private business chooses to accept it, but no one is obliged to, and taxes are settled in dollars. For how other countries compare, see is cryptocurrency legal and crypto regulation around the world.

Rules differ by country and change often. Check the official source or a qualified professional for your own situation.