Bitcoin In El Salvador: Only 11% Of Registered Businesses Are Active

El Salvador, once the global showcase for bitcoin, sees its crypto dream cracking. Behind the triumphant tweets and the colorful murals of Bitcoin Beach, reality stings: only 11% of registered businesses are active. While Bukele persists in buying BTC, the law changes, international institutions exert pressure, and actual adoption stalls. One thing is certain: the country is at a crossroads, and digital gold has never weighed so heavily.

The Inefficiency of the Salvadoran Bitcoin Model: A Worrying Figure

El Salvador’s model as a bitcoin pioneer faces a bitter reality. Of 181 bitcoin providers registered with the Central Bank of El Salvador, only 20 businesses are active. This means that 89% of companies are inactive. According to BCR data, 161 providers do not comply with Bitcoin Law requirements, including those related to cybersecurity, anti-money laundering, and asset transparency.

The strict criteria defined by law, such as maintaining an anti-money laundering (AML) program, data protection, and financial transparency, are often ignored. Chivo Wallet, the state-supported platform, remains one of the exceptions, but most businesses fail to meet regulatory standards.

This sends a clear signal: El Salvador’s ambitions regarding bitcoin are far from realized on the ground.

IMF and Contradictions: The Withdrawal of Bitcoin as Legal Tender

On March 3, 2025, the IMF demanded that El Salvador reduce its role in bitcoin. This was part of an agreement that allowed the country to receive a $1.4 billion loan. In exchange, El Salvador dropped the requirement to accept the queen of cryptocurrencies as legal tender. The project to make BTC a common currency now seems called into question by international pressure.

However, the Salvadoran government persists in its strategy of acquiring bitcoin, although this contradicts IMF requirements. According to Joe Nakamoto, a player in the crypto scene, this situation raises questions:

The IMF just approved a loan… but at what cost?

The country still holds 6,100 BTC, worth more than 500 million dollars, a volatile asset that could pose problems if bitcoin prices suddenly drop.

The Reality of Bitcoin Adoption: A Striking Paradox

The paradox is striking. Although bitcoin is officially recognized as legal tender, its real adoption in El Salvador remains minimal. Less than 10% of Salvadorans have used the Chivo Wallet, the application launched by the government to facilitate bitcoin access. Data from 2022 reveals that after receiving the $30 bonus, over 60% of users did not even open the app.

Consequently, bitcoin’s real impact on the economy remains marginal.

Moreover, areas like Bitcoin Beach, once considered examples of the bitcoin circular economy, have faced rapid gentrification. Residents of these areas have not adopted bitcoin significantly.

On the contrary, stablecoins like Tether seem to be gaining increasing importance for local transactions.

Bitcoin is supposed to transform the Salvadoran economy, but adoption remains low.

To remember:

• 89% of bitcoin companies in El Salvador are not operational, signaling a regulatory failure;
• The IMF imposes restrictions, but the government continues buying BTC, creating political contradictions;
• Chivo Wallet and other initiatives remain exceptions, adoption by Salvadorans is very low;
• The Bitcoin Beach project shows the limits of the circular economy and is affected by gentrification.

The recent meeting between Trump and Bukele highlighted a major paradox: although bitcoin is at the heart of El Salvador’s economic policy, it was not mentioned during the talks. The future of this flagship crypto in the country seems more uncertain than ever. Between contradictory politics and low adoption, BTC’s future in El Salvador hangs in the balance.