What happened to El Salvador canceling Bitcoin as legal tender?

Written by: Efrat Fenigson

Compiled by: AididiaoJP, Foresight News

In the past week, I visited El Salvador for the third time in a year, and it is evident that the country is undergoing a real transformation, not just theoretical talk, not superficial gestures, but a fundamental change in the way people live, think, build, and envision the future. The moment that brought all of this together occurred during the private dinner with President Nayib Bukele that I was fortunate enough to attend over the weekend.

I have been following his work for several years. In my podcast, I interviewed nine Salvadorans and expatriates living locally, as well as businesspeople, builders, community organizers, and ordinary citizens. A year ago, I tweeted that my dream was to meet him one day.

What I didn't expect was that when the banquet ended, I approached him for a photo, and just said, “Hello, I am Efrat,” before I could introduce myself, he immediately responded:

I know you, I've watched your podcast.

That moment was unforgettable for a lifetime because it made me feel that all the experiences of this week were closely connected to the grand picture unfolding in this country.

The Triple Landscape of the Nation

This week three events were held, “Regaining Health”, “Adopting Bitcoin”, and “Historic Bitcoin”, each revealing different aspects of El Salvador's development trajectory.

The “Health Reclamation Seminar” led by Salvadoran doctor Kenneth Fernandez-Taylor explored the intersection of physical health and sound money. Some discussions focused on how unsound money and long working hours shape people's stress, uncertainty, and long-term health. In a country that has already reclaimed public safety and is committed to regaining economic freedom, the connection between health and money seems so intuitive, not abstract at all. Four years ago, when the world was gradually descending into madness during the “apocalyptic pandemic,” such a gathering of truth-seeking, freedom-loving doctors, healers, and experts felt like a distant dream. But in El Salvador, dreams are becoming reality.

At the “Adopt Bitcoin” conference, I saw the foundational engine of this transformation. Circular economies like El Salvador's “Bitcoin Beach” (El Zonte), “Berlin,” and “MurphLife” vividly demonstrate what happens when people earn, spend, and save in “sats.” Communities such as “Bitcoin Babies,” “Orange Women,” or Argentina's “La Crypta” emphasize that Bitcoin belongs to everyone. Merchants naturally accept Bitcoin. Children grow up in its atmosphere. “My First Bitcoin” announced its new chapter: it will provide educational materials, frameworks, and guidance for over 70 projects across more than 40 countries, supporting community-led Bitcoin education. The startup exhibition area was filled with founders who have established offices here, starting their ventures from El Salvador. I repeatedly heard a common theme, quite simply: here, you can get things done.

Image: Michael Holomon Jr.

The historic moment of Bitcoin and El Salvador

But the climax of this week, which also set the tone for everything, was the “Historic Bitcoin” conference. This is the world's first government-led Bitcoin conference, organized by the Bitcoin Office initiated by the Salvadoran government (led by Stacey Herbert and her team), held in the National Palace and the National Theatre. These two locations are highly symbolic landmarks, and holding the Bitcoin conference in such solemn places carries more significance than any words can express. The hall was filled with ministers, entrepreneurs, and international speakers; voices from the United States, Europe, Latin America, and Africa. Guests received a booklet titled “El Salvador, the Bitcoin Country,” with a cover featuring President Bukele's photo, clearly indicating that Bitcoin is a national strategy here.

Photo: Efrat Fenigsen

In the outside Gerardo Barrios Square, the meeting extended into public space; the meeting content was accompanied by Spanish translation, broadcast live to local families, students, and elders. Shops and stalls accepted “sco” payments, and Bitcoin seemed to return to its natural habitat, integrating into the city's daily life, with the public also becoming a part of the meeting.

Multiple announcements highlight the country's direction: the Ministry of Agriculture has signed a cooperation agreement with “The Beef Initiative” to strengthen local beef production. Steak 'n Shake announced that El Salvador will be its first stop in its expansion into Latin America and will accept Bitcoin from day one of opening.

Image source: Translating El Salvador

The government announced plans to procure NVIDIA B300 chips, which, supported by Hydra Host, have the computing power sufficient for locally training and running advanced AI models. This is a step toward sovereign computing infrastructure, reducing reliance on large tech companies' data centers and laying the groundwork for El Salvador to build its own AI capabilities domestically. After receiving a recent investment of $17 million, Mempool announced it will be registered in El Salvador. With the support of Lina Seche and the Bitcoin office, as part of the national “Daily Two Schools” program aimed at large-scale modernization and expansion of educational infrastructure, 500 classrooms will be renovated for Bitcoin and financial education. Together, these initiatives paint a coherent picture: a nation is synchronously building its future on multiple levels.

Ricardo Salinas's attendance added a spectacular moment to the “Historic Bitcoin” conference. In his speech, he stated, “El Salvador stands on the right side of history,” and particularly pointed out the significant improvements in public safety: “(Here) is safer than Japan. I really wish my country could be like this too.” One of the most influential entrepreneurs in Latin America expressed the common feelings of many visitors this week.

Image: Efrat Feinigon

Presidential Dinner

However, the clearest window into that future was during that banquet.

Image: El Salvador Bitcoin Office

Booker is completely different from his comic persona internationally. He is sharp-minded, quick to react, and witty in speech, with a deep understanding of Bitcoin culture. As soon as he sat down, he joked, “Guys, it's over, Bitcoin is done,” simply because the price had dropped below $100,000 that day. He is not the type of politician who deliberately tries to appear relatable or just recites from a script; he truly knows the field and genuinely understands Bitcoin.

When the topic turned to Bitcoin's long-term trajectory, he said something that stuck with me: “Bitcoin should become a currency.”

It is not an investment, nor an asset class, but a currency. He clearly sees the ultimate state and understands the path to get there. The communities that use Bitcoin in their daily lives are the backbone that transforms it from an idea into a functional currency system.

His keen intelligence complements his analytical insights. When Giacomo Zucco, director of Plan B Network, was introduced as an “anarcho-capitalist,” Booker's immediate response was, “That's fine, I'm friends with Milei too,” and he playfully referred to him as “that anarchist” throughout the dinner. After Wiz gifted him a samurai sword, and Giacomo presented him with a bottle of rum called “The Dictator” (lightly mocking the media narrative), someone reminded that Booker doesn’t drink. He immediately replied, “That's fine, I don't often dance with swords either.”

At the end of the banquet, Giacomo thanked him, and Booker smiled and said a sentence that summarized his governing philosophy: “I'm sorry I'm running a government, but it's a very small government.”

Happy Whistleblower

I have visited many countries that are sliding into a darker trajectory: more surveillance, greater centralization, stricter control, and more violence. However, everything happening in El Salvador is just the opposite: safe and unoppressive, structured yet not suffocating, free and coexisting with responsibility. After enduring decades of violence from gangs, Salvadorans feel a sense of liberation. You can see it on their faces: they are friendly, relaxed, and filled with gratitude. During my last journey, I saw a 75-year-old man riding his bicycle through El Sonte at sunrise, whistling as he went. “When do people whistle?” I asked myself. “Happy people whistle. People only whistle when they feel safe.” That simple moment became a silent metaphor for my feelings about this place.

Yes, this country still needs to deal with global institutions like the International Monetary Fund. The recent decision to abolish Bitcoin's status as legal tender is indeed regrettable, but after glimpsing the substance beneath the surface, it feels like taking one step back and four steps forward. Certainly, progress is not always smooth. But the direction is undoubtedly clear: moving towards monetary sovereignty, digital sovereignty, educational sovereignty, and popular sovereignty, with all forces pushing in the same direction.

This week, I was able to glimpse a country that is reshaping itself.

As most countries in the world struggle with the impact of the global agenda on their economies, security, and fragile social structures, El Salvador is changing its reality and stepping into a new timeline.

Meeting with Booker felt nothing like meeting a president.

It feels more like meeting an architect determined to liberate his country and pave the way for it.