El Salvador, under President Bukele, initially embraced Bitcoin as legal tender in 2021 in an attempt to liberate its citizens from the constraints of central banking. However, growing unpopularity and the demand for international loans from the IMF led to a reversal of this decision. Reports indicate that approximately 92% of Salvadorans were not using Bitcoin in 2023, with the government required to revoke Bitcoin's legal tender status to secure a $1.4 billion credit line from the IMF. The Fund has urged the Salvadoran government to restrict Bitcoin-related activities, including limiting public sector engagement with digital assets. Despite investing $200 million in Bitcoin infrastructure and incentives, the public's engagement with the cryptocurrency remained low, as many individuals merely exchanged it for dollars. The IMF's influence highlights a broader pattern wherein under-resourced nations face pressure to prioritize fiat currency, undermining potential financial liberation through alternatives like Bitcoin.

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