Bitcoin payments dwindle at El Salvador’s original crypto hub

Jon Atack, a Bitcoin Core contributor living in the region, sparked a fresh conversation on the state of local adoption after staff at a local eatery admitted his lunch bill was their only Bitcoin payment of the month. Employees noted that most customers now rely on traditional card payments, with some staff even struggling to recall how to operate the digital wallets once essential to the community’s identity.

This shift reflects a deepening trend identified in national polling. Data from the Universidad Centroamericana shows that Bitcoin usage for purchases dropped to 8.1% in 2024, a sharp decline from the 25.7% reported during the initial rollout in 2021. Similar findings from the Universidad Francisco Gavidia indicate that over 90% of residents now bypass Bitcoin for daily transactions entirely.

Policy shifts have further cooled merchant interest. Following negotiations for a $1.4 billion Extended Fund Facility with the International Monetary Fund, El Salvador transitioned to a voluntary acceptance model for the private sector. Businesses are no longer legally obligated to facilitate crypto payments, and the government has moved to divest from its Chivo wallet infrastructure. While the state continues to manage a significant Bitcoin reserve, these holdings remain distinct from the retail ecosystem. For now, the once-vibrant experiment in El Zonte appears to be retreating from the storefronts and into the quiet portfolios of long-term holders.