Five Years On, El Salvador Is Still Buying Bitcoin

§ 01 Executive Snapshot

• What: El Salvador continues to accumulate Bitcoin five years after adopting it as legal tender.
• Who: El Salvador's government, led by President Nayib Bukele.
• Why it matters: This event signifies ongoing national commitment to Bitcoin amidst regulatory changes and explores the implications for cryptocurrency adoption in emerging markets.

§ 02 Key Developments

• El Salvador's government holds 7,677 BTC, valued at approximately $480 million.
• Since June 2025, the country has added more than 1,600 BTC, including a notable purchase of over 1,000 BTC in November 2025.
• The government announced a daily purchase strategy of one Bitcoin per day starting November 2022.

§ 03 Strategic Context

• El Salvador was the first country to adopt Bitcoin as legal tender in June 2021, setting a precedent in global cryptocurrency policies.
• The initial enthusiasm around Bitcoin as a means to boost remittances has not yet resulted in significant financial transformation for the country's economy.

§ 04 Strategic Implications

• The ongoing accumulation of Bitcoin and the absence of capital gains tax could attract foreign investment and influence other nations' cryptocurrency policies.
• The shift in legal tender status may impact local adoption and the effectiveness of Bitcoin in improving remittance flows.

§ 05 Risks & Constraints

• Regulatory changes, such as the removal of mandatory acceptance of Bitcoin, could hinder adoption and investor confidence.
• The remittance case for Bitcoin remains underwhelming, with crypto accounting for only 0.71 percent of total remittances in Q1 2026.

§ 06 Watchlist / Forward Signals

• The government is developing a “Volcano Bond” backed by Bitcoin, indicating future financial innovation.
• Monitoring of remittance flows and the impact of Bitcoin on the economy will signal the success or failure of El Salvador's Bitcoin initiative.