El Salvador-based activist and founder of My First Bitcoin, John Dennehy highlighted the evolution of Bitcoin (BTC) in three years. On X, the crypto enthusiast recalled being in San Salvador on September 6, 2021, just a day before it became legal tender in El Salvador.
On September 7, 2021, El Salvador, under the leadership of Nayib Bukele, became the first nation to make such a move on BTC. As a journalist who went about taking pictures and getting quotes, Dennehy discovered that some new Chivo Bitcoin ATMs were installed around the city.
However, he said they had not been powered on at the time. Due to an ongoing gang crackdown in 2021, the ATMs were well-guarded by armed military officers.
Three years have passed, and the outlook has improved in El Salvador. So far, the country has delved into building a Bitcoin treasury, mining, and education for its citizens.
El Salvador Faces IMF Criticism For Adopting Bitcoin
This is not to say that El Salvador has had it easy all these years. The country has been trying to access a $1.4 billion loan from the International Monetary Fund (IMF).
As a criterion for securing the loan, the IMF demanded that the nation make some changes to its pro-Bitcoin laws. This confirms the financial institution’s anti-BTC stance.
IMF’s Communications Director, Julie Kozack, stated plainly that the “risks” remain a key issue in discussions with El Salvador. The IMF is concerned about the financial integrity and stability of the digital currency.
Based on these fears, the $1.4 billion loan discussion has stalled for over 2 years.
ETF Approval Contributes to BTC Outlook
As a financial product, Bitcoin has seen more institutional and mainstream adoption. Business intelligence and software company MicroStrategy adopted a Bitcoin strategy a year before El Salvador did.
Notably, the Michael Saylor-led firm has improved this strategy all these years. It has even encouraged Metaplanet and Semler Scientific to do the same.
After several years of seeking the United States Securities and Exchange Commission’s (SEC) approval on spot Bitcoin ETF offerings, the regulator finally greenlighted the product in January 2024.
This marked a major milestone for the digital currency. Top investment asset management firms such as BlackRock, Fidelity, Grayscale, and Bitwise, among others, became issuers of Bitcoin ETFs.
While this is not directly linked to El Salvador’s adoption, it shows how the asset has evolved.
Halving Event And a New ATH
The launch of spot Bitcoin ETF led to a meteoric rise in BTC adoption among institutional investors.
To complement this, in April 2024, Bitcoin had its fourth halving, a once-in-four-year event involving splitting miner’s rewards. In the weeks leading up to the 2024 halving, Bitcoin skyrocketed as its price hit a new all-time high (ATH) of over $73,750.07.
Since then, the flagship cryptocurrency has seen some price retraction but is doing better than when El Salvador adopted it as a legal tender.
A historical snapshot shows that Bitcoin price traded as low as $51,753 this week. However, at the time of this writing, it was trading at $54,521.75, up 1.09% in the last 24 hours.
