In a notable development since El Salvador’s groundbreaking decision to embrace Bitcoin as legal tender in 2021, a significant portion of the registered Bitcoin service providers in the nation are now inactive.
Data acquired by EFE from the Central Reserve Bank (BCR) indicates that 89% of the 181 registered Bitcoin service providers have ceased operations. Specifically, 161 of these providers are classified as “non-operating,” with at least 22 failing to meet critical regulatory stipulations outlined in Article 4 of the Bitcoin Law Regulations.
The regulatory framework mandates that providers adhere to standards such as implementing anti-money laundering protocols, maintaining accurate financial records, and ensuring cybersecurity measures that are appropriate for their services.
Only 20 Bitcoin Providers Remain Active in El Salvador
Currently, only 20 of these providers remain in operation, including the state-owned Chivo Wallet, Crypto Trading & Investment, and Fintech Americas.
This significant decline in active providers raises concerns regarding the long-term viability of the Bitcoin ecosystem within the country.
El Salvador gained international attention in 2021 for becoming the first country to make Bitcoin legal tender alongside the U.S. dollar. However, following a $1.4 billion agreement with the International Monetary Fund (IMF), the government retracted essential elements of the Bitcoin Law, revoking Bitcoin’s legal tender status and the government’s obligation to ensure its acceptance.
Despite the IMF’s advisories to limit government engagement, President Nayib Bukele’s administration has persisted in its Bitcoin purchasing strategy, currently holding over 6,100 BTC, which is valued at more than $500 million. Detractors warn that this approach may threaten the IMF agreement and introduce financial instability.
Bukele Aims to Transform El Salvador Into Regional Tech Hub
In addition to cryptocurrency initiatives, President Bukele is also aiming to position El Salvador as a regional technology hub.
He recently conversed with Ben Horowitz and Marc Andreessen, co-founders of the renowned Silicon Valley venture capital firm Andreessen Horowitz (a16z), to explore potential investments in artificial intelligence.
President Bukele recently met at Casa Presidencial with the co-founders of Silicon Valley venture capital firm, Andreessen Horowitz: @pmarca @bhorowitz
Topics discussed include:
Investment opportunities in El Salvador as an emerging regional tech hub focused on freedom… pic.twitter.com/WwQy0wkApY
— The Bitcoin Office (@bitcoinofficesv) March 2, 2025
The discussions centered on policy incentives, including a 0% tax rate for technology sectors and supportive regulations for AI development, aiming to position El Salvador at the forefront of technological advancement.
Additionally, the nation has initiated the construction of the “Bitcoin City Airport,” expected to eventually connect Bitcoin City with global destinations.
A report from the official press agency reveals a video featuring President Bukele at a recent event, laying the first stone at the future site of what will be known as Pacific Airport (official name).
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