Adoption of Bitcoin by Nations: From El Salvador to the Next Candidates

Bitcoin, the decentralized digital currency first introduced by Satoshi Nakamoto in 2009, has evolved from a technological experiment into a globally recognized asset, even attracting the attention of national governments. The adoption of Bitcoin at a state level has become one of the most intriguing financial phenomena of the past decade, with El Salvador leading the charge. This article explores El Salvador’s journey in adopting Bitcoin, its impacts, and the countries that might follow suit as of March 2025.

El Salvador: The Trailblazer of Bitcoin Adoption

On September 7, 2021, El Salvador made history as the first country in the world to adopt Bitcoin as legal tender, alongside the U.S. dollar. Spearheaded by President Nayib Bukele, this decision aimed to enhance financial inclusion, attract investment, and reduce reliance on traditional banking systems—particularly for the 70% of the population without access to banking services.

Since then, El Salvador has pursued a gradual buying strategy (dollar-cost averaging), consistently adding Bitcoin to its national reserves. By March 2025, the country’s total Bitcoin holdings have surpassed 6,126 BTC, according to recent reports. The government also launched an official digital wallet, Chivo, to facilitate Bitcoin transactions, though its rollout faced technical glitches and public protests due to concerns over volatility.

The impact has been notable. The tourism industry has surged by over 30% since Bitcoin’s adoption, as reported by Tourism Minister Morena Valdez, with a significant uptick in visitors from the United States. Furthermore, profits from Bitcoin investments have funded social projects, such as the construction of 20 schools in 2021. To date, El Salvador’s Bitcoin reserves are worth hundreds of millions of dollars, yielding substantial financial gains amid BTC’s significant price increases.

However, the move has not been without criticism. The International Monetary Fund (IMF) and World Bank have warned of economic stability risks due to Bitcoin’s volatility, while some residents struggle to adapt to the new technology. Nevertheless, President Bukele remains optimistic, asserting that Bitcoin is part of a long-term vision to position El Salvador as a hub for global financial innovation.

Central African Republic: The Next Step

Following El Salvador, the Central African Republic (CAR) became the second nation to adopt Bitcoin as legal tender in April 2022. This decision was driven by a desire to modernize the economy and improve financial access in a country where the majority of the population lacks banking services. CAR also introduced Sango Coin, a blockchain-based digital currency, to raise funds for infrastructure development.

Despite its ambition, Bitcoin adoption in CAR has faced significant hurdles, including limited technological infrastructure and legal pushback against certain crypto-related initiatives. As of 2025, the implementation has yet to yield results as substantial as El Salvador’s, but it remains a testament to developing nations’ interest in exploring Bitcoin’s potential.

The Next Candidates: Who Might Join?

Several countries have shown strong signals of potentially following El Salvador and CAR, either by adopting Bitcoin as legal tender or incorporating it into national reserves. Here are some likely contenders based on recent developments:

• Brazil: Brazil has taken significant steps toward Bitcoin adoption with the passage of a regulatory framework in 2022 recognizing BTC as a payment method. In 2024, Brazil’s Congress proposed RESBit (Sovereign Strategic Reserve of Bitcoins), aiming to allocate 5% of international reserves to Bitcoin. As Latin America’s largest economy, this move could be a game-changer for the region.
• United States: While not yet adopting Bitcoin as legal tender, the U.S. has shown interest through Senator Cynthia Lummis’s proposed “Bitcoin Act” in 2024. The bill suggests purchasing 200,000 BTC annually for five years as a strategic reserve, backed by President-elect Donald Trump, who has expressed plans to store BTC in a national vault. If realized, this would position the U.S. as a major Bitcoin holder.
• Argentina: With inflation soaring to 147% in 2023, Argentina has seen organic Bitcoin adoption among its population. Research from ARK Invest indicates that BTC adoption in Argentina has surpassed that of El Salvador. The 2023 election victory of pro-Bitcoin candidate Javier Milei has fueled speculation that the country could soon formalize Bitcoin within its economic system.
• United Arab Emirates (UAE): The UAE is rumored to have amassed 420,000 BTC by 2025, making it one of the world’s largest holders, though no official confirmation exists. This aligns with the UAE’s strategy to diversify its economy and establish itself as a global digital finance hub.

Challenges and Future Prospects

The adoption of Bitcoin by nations faces several challenges, including price volatility, uneven technological infrastructure, and pressure from international bodies like the IMF. Yet, its potential benefits—such as financial inclusion, resilience against inflation, and investment appeal—keep Bitcoin a compelling option for strategic adoption.

As of March 2025, El Salvador remains a benchmark for successful national Bitcoin adoption. Its boldness has inspired other countries to experiment with the digital asset, whether as a payment method or a reserve asset. Looking ahead, we may see more nations join the “Bitcoin club,” particularly amid global economic uncertainty and growing interest in blockchain technology.

Will Bitcoin become an integral part of the global financial system? Only time will tell. However, the journey from El Salvador to the next candidates demonstrates that this digital revolution is just beginning.

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