## El Salvador: Selected Issues

_IMF Staff Country Reports, March 19, 2025_

## Source details

**Canonical URL:** [El Salvador: Selected Issues](https://www.imf.org/en/publications/cr/issues/2025/03/19/el-salvador-selected-issues-565394)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/03/19/el-salvador-selected-issues-565394/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/03/19/el-salvador-selected-issues-565394/index.json)
- [Bundle manifest](/en/publications/cr/issues/2025/03/19/el-salvador-selected-issues-565394/bundle-manifest.json)

## Bibliographic details
- Published: March 19, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229005104.002

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### Main findings on Bitcoin adoption and financial inclusion
- The Selected Issues paper focuses on Bitcoin and financial inclusion in El Salvador.
- El Salvador’s economy can benefit from policies to facilitate access to financial services, enhance financial literacy and lower the cost of remittances.
- The Bitcoin adoption as legal tender has not contributed to promote financial inclusion and digital remittances.
- More than one year after implementation, the adoption of Bitcoin as official currency with legal tender status has thus far not led to visible improvements in financial inclusion.
- Despite the large use of public funds for subsidizing bitcoin transaction costs, acceptance and use by individuals and firms remains minimal.
- There is no evidence of any beneficial use case of Bitcoin for the unbanked population.

### Risks and systemic concerns identified
- The project involves sizeable risks, including:
  - fiscal contingencies,
  - consumer protection issues,
  - governance issues.
- These risks could be magnified in the event of wider adoption and further fallout in crypto markets.

### Policy implications and recommendations
- Prioritize policies to:
  - facilitate access to financial services,
  - enhance financial literacy,
  - lower the cost of remittances.
- Reconsider public subsidy programs for bitcoin transaction costs given minimal private uptake and the fiscal risks described.

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## Content in this bundle

- **El Salvador: Selected Issues; IMF Country Report No. 25/68; March 2, 2023**
  - [El Salvador: Selected Issues; IMF Country Report No. 25/68; March 2, 2023 (Markdown version)](/-/media/files/publications/cr/2025/english/1slvea2025003-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [El Salvador: Selected Issues; IMF Country Report No. 25/68; March 2, 2023 (PDF)](/-/media/files/publications/cr/2025/english/1slvea2025003-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2025/03/19/el-salvador-selected-issues-565394_