Which country adopted Bitcoin as legal tender in 2021?

El Salvador was the country that adopted Bitcoin as legal tender in 2021.

Its Legislative Assembly passed the Bitcoin Law in June 2021 after President Nayib Bukele’s government promoted the cryptocurrency as a way to expand financial access, attract investment, and potentially reduce the cost of remittances. The law took effect on September 7, 2021, making El Salvador the first country to give Bitcoin legal-tender status.

Bitcoin initially circulated alongside the United States dollar, which was already El Salvador’s main currency. The government also introduced the Chivo digital wallet and announced incentives for users. The policy attracted global attention but faced criticism over Bitcoin’s price volatility, technological requirements, public resistance, and the risks of using public funds to purchase cryptocurrency.

A current-status mix-up is possible: reforms agreed in 2025 substantially removed Bitcoin’s legal-tender obligations. That does not change the historical answer to this question, which asks which country adopted it in 2021. Venezuela, Honduras, and Panama did not become the first country to do so.