In September 2021, El Salvador became the first nation to embrace Bitcoin as legal tender, a radical move spearheaded by President Nayib Bukele to reshape its economy. Almost four years on, the experiment has seen soaring ambitions tempered by practical setbacks, offering lessons for a world increasingly intrigued by cryptocurrency’s potential. As economic instability and skepticism of traditional finance grow, other countries are eyeing Bitcoin as a national currency. Here’s how El Salvador paved the way and which nations might step up next.
El Salvador’s Bitcoin Leap: From Vision to Reality
El Salvador’s Bitcoin saga kicked off with fanfare when Bukele unveiled the plan at the 2021 Bitcoin Conference in Miami, touting it as a fix for financial exclusion, costly remittances, and economic stagnation. The Bitcoin Law passed days later on June 9, with a 62-22 vote, mandating acceptance alongside the U.S. dollar and launching Chivo Wallet with $30 per user to drive uptake. The September 7 rollout stumbled—glitches crippled the app, protests flared over volatility fears, and a 2021 poll showed 68% disapproval. By 2023, usage had dwindled post-bonus, with only 20% of businesses complying, per a Science study. Facing a $1.4 billion IMF loan in 2024, El Salvador dialed back in February 2025: Bitcoin’s optional for businesses, unusable for taxes, and Chivo’s fading out. Still, Bukele holds 6,137 Bitcoins in reserves, adding 52 recently, betting on a long-term win despite 92% of Salvadorans shunning it in 2024. It’s a mixed legacy—low adoption, high profile.
Central African Republic: A Fragile Follower
The Central African Republic (CAR) became the second nation to adopt Bitcoin as legal tender in April 2022, aiming to leapfrog its economic woes. Rich in minerals but wracked by poverty and conflict, the CAR saw Bitcoin and its Sango blockchain as a way to tokenize assets like land and attract global capital, loosening ties to the French-backed CFA franc. The reality has been stark: with 90% of its 5 million people offline and literacy low, adoption is negligible. The government persists, framing crypto as a lifeline, but the lack of infrastructure—fewer than 10% have reliable internet—has made it more symbolic than functional. The CAR’s struggle mirrors El Salvador’s early hurdles, testing Bitcoin’s limits in extreme conditions.
Panama: A Trade Hub’s Crypto Ambition
Panama flirted with Bitcoin in 2021 when Congressman Gabriel Silva proposed recognizing it and other cryptocurrencies, winning initial legislative nods in April 2022. As a dollarized trade hub, Panama saw blockchain as a way to lure investment, streamline tax payments, and boost financial tech. The pitch leveraged its strategic position—think shipping and banking—where crypto could enhance efficiency. Progress stalled as banks recoiled at regulatory gaps, but the idea hasn’t died. With better internet penetration than El Salvador (over 70%) and a sophisticated economy, Panama could refine the model if El Salvador’s reserve gains shine or U.S. crypto policies under Trump turn favorable. It’s a sleeper candidate with potential.
Mexico: Remittances and Reform
Mexico’s Bitcoin buzz began in 2022 when Senator Indira Kempis tabled a bill to tackle its 60% unbanked population and slash remittance fees, which hit $60 billion from the U.S. in 2024. Unlike hyperinflation-plagued peers, Mexico’s draw is practical—Bitcoin’s near-zero transfer costs could save millions annually, bypassing mistrusted banks. The proposal languished amid financial sector pushback, but crypto’s grassroots traction persists, especially in border regions. A Trump-led U.S. crypto embrace could tip the scales, given tight economic ties. Mexico’s infrastructure (65% internet access) gives it an edge over El Salvador, though political will remains the wildcard.
Argentina: Inflation’s Crypto Escape
Argentina hasn’t formally proposed Bitcoin as legal tender, but its economic chaos—over 200% inflation in 2024 and strict currency controls—has fueled informal adoption. President Javier Milei’s libertarian streak, since his 2023 election, aligns with crypto’s ethos, viewing it as a dollar alternative for a battered peso. Bitcoin’s already a hedge here; exchanges thrive as citizens dodge capital restrictions. Scaling to legal tender is daunting given Argentina’s size, but partial steps—like tax payments—could emerge if inflation worsens. With 80% internet penetration, it’s better equipped than most, though entrenched financial interests may resist. Argentina’s a dark horse with momentum.
Nigeria: A Grassroots Push
Nigeria’s crypto scene is electric despite a 2021 Bitcoin ban, with the country topping global peer-to-peer trading in 2023. A 70% naira devaluation since 2020 and 50% unbanked population have driven demand, sidelining the tepid eNaira digital currency launched in 2021. Bitcoin’s appeal is its decentralization—citizens use it to dodge currency controls and inflation. The government prefers eNaira’s oversight, but public pressure could force a pivot if the digital naira flops further. With 60% internet access and a young, tech-savvy populace, Nigeria has the bones for a Bitcoin shift, though regulatory hurdles loom large. It’s a grassroots contender.
The Road Ahead for Bitcoin Nations
El Salvador’s path—high hopes, rocky execution—shows Bitcoin’s promise (inclusion, cost savings, sovereignty) wrestling with its pitfalls (volatility, tech gaps, global backlash). The CAR’s faltering echo this, while Panama, Mexico, Argentina, and Nigeria watch and weigh. Bitcoin’s 2025 rally (near $80,000) and Trump’s pro-crypto U.S. tilt offer tailwinds, but success hinges on trust, education, and connectivity—El Salvador’s 50% internet rate and 92% non-use rate scream that lesson. The next adopter must bridge those divides. Will it be Panama’s polish, Mexico’s pragmatism, Argentina’s desperation, or Nigeria’s defiance? Bukele’s reserve bet keeps the spotlight on, and the world’s waiting.
