Most Bitcoin businesses in El Salvador quietly vanish from the market

Most Bitcoin businesses in El Salvador have indeed quietly vanished from the market. As of April 2025, only 20 out of the 181 Bitcoin service providers registered with El Salvador's central bank remain operational.

This sharp decline reflects the broader challenges faced by the country's Bitcoin experiment, including regulatory changes, reduced government support, and waning public enthusiasm.

In January 2025, El Salvador's Legislative Assembly removed Bitcoin's status as legal tender, meaning businesses are no longer required to accept Bitcoin as payment. This change, prompted by a $1.4 billion loan agreement with the International Monetary Fund (IMF), made private sector Bitcoin acceptance voluntary and restricted public sector involvement in Bitcoin-related activities.

The government is in the process of selling or shutting down its official Bitcoin wallet, Chivo, further reducing state-backed infrastructure for Bitcoin payments.

The IMF agreement also required the government to scale back its Bitcoin initiatives, leading to a pause in daily Bitcoin purchases and a general cooling of the pro-Bitcoin policy environment.

These developments have made it difficult for Bitcoin-focused businesses to operate profitably or find a sustainable user base, resulting in most quietly exiting the market.

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