Which country became the first to adopt Bitcoin as legal tender in 2021?

El Salvador became the first country to adopt Bitcoin as legal tender in 2021.

El Salvador’s Bitcoin Law took effect on 7 September 2021. It recognized bitcoin as legal tender alongside the U.S. dollar, which had already been the country’s official currency. The law required economic agents to accept bitcoin when offered for payment, subject to specified technical and practical provisions.

The government introduced the Chivo digital wallet and promoted the use of bitcoin for payments and remittances. The policy attracted international attention because it was the first national-level legal-tender experiment involving Bitcoin. It also generated debate about volatility, consumer protection, financial inclusion, and whether people should be required to use the asset.

Legal tender does not mean every citizen must hold bitcoin or that bitcoin replaces all other money. El Salvador’s policy was distinct from countries that merely regulate cryptocurrency, allow it as an investment, or permit limited payment use. The adoption date is therefore a specific historical milestone, not a claim that Bitcoin became a global official currency.