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El Salvador Makes History Again: Announces Bitcoin Menu and Adopts Regulated Framework
In a groundbreaking move, El Salvador has solidified its position as a crypto-friendly nation by introducing the world’s first bitcoin-based menu. This innovative initiative is part of the country’s broader strategy to balance innovation with international financial obligations and domestic realities. As of 2025, El Salvador no longer makes Bitcoin mandatory legal tender, but instead has shifted focus towards voluntary adoption and compliance.
Key Developments in the Timeline
To better understand the evolution of crypto regulations in El Salvador, it is essential to examine recent updates:
* August 8, 2025: National Assembly passes Investment Banking Law, enabling financial institutions with over $50 million in capital to offer services linked to digital assets to sophisticated investors.
* July 30, 2025: Memorandum signed between the National Commission of Digital Assets (CNAD) and the Central Bank of Bolivia. The agreement focuses on blockchain intelligence tools, regulatory frameworks, risk analysis models, and cryptocurrency adoption. This collaboration aims to promote financial modernization in both countries.
El Salvador’s Approach to Cryptocurrency
In 2025, El Salvador’s stance toward cryptocurrency is characterized by regulatory maturity and strategic adaptation. Although Bitcoin is no longer mandatory as legal tender, the government continues to hold a significant amount of BTC worth over $738 million. Moreover, it has initiated sustainable mining initiatives powered by geothermal energy from volcanoes.
Despite this, public crypto adoption remains low at 3.34%, with approximately 214,000 users expected by year-end. The administration is working on new initiatives to boost the utility and perception of cryptocurrency.
Source: coinpedia.org
