Sovereign Adoption: El Salvador, Bhutan, Argentina

What you'll learn

• The Idea That Sovereigns Would Hold Bitcoin
• El Salvador: The First Bitcoin Legal Tender Nation
• Bhutan: The Quiet Hydropower Miner
• Argentina, the Central African Republic, and the Reversals
• US Executive Order 14233: The Strategic Bitcoin Reserve

Key terms

El Salvador Bitcoin Law

Legislation passed June 9, 2021 making BTC legal tender alongside the US dollar, effective September 7, 2021. Modified in early 2025 under an IMF Extended Fund Facility deal to make merchant acceptance voluntary, while preserving treasury accumulation.

Chivo wallet

El Salvador's state-launched Bitcoin and dollar wallet, offered with a 30 dollar BTC bonus to encourage adoption. Citizen usage was modest; wind-down began under 2025 IMF deal modifications.

Bukele BTC treasury

El Salvador's national Bitcoin holdings, accumulated by President Nayib Bukele's government from late 2021. By 2026 exceeds approximately 6,200 BTC; small daily DCA buys continue. Bitcoin Office headed by Stacy Herbert coordinates policy.

Druk Holding & Investments (DHI)

Sovereign investment arm of the Royal Government of Bhutan, which has accumulated significant BTC through state-owned hydropower-powered mining operations since around 2019. Position estimated at hundreds of millions to over a billion dollars by 2024-2026.

Milei dollarization debate

Ongoing Argentine economic policy discussion under President Javier Milei (took office December 10, 2023) regarding formal dollarization as a remedy for chronic peso instability. Actual policy has been fiscal consolidation, peso devaluation, and capital control removal — no formal BTC adoption but high stablecoin usage.

Central African Republic Bitcoin law

BTC legal tender law passed in April 2022, the second after El Salvador. Effectively reversed in March 2023 when the constitutional court invalidated key provisions amid CFA franc currency union conflict and limited domestic infrastructure. Cited as a cautionary case.

Executive Order 14233

Signed by President Trump on March 6, 2025, establishing the US Strategic Bitcoin Reserve from federally-held BTC (largely from asset forfeitures, ~200,000 BTC). Also created a separate Digital Asset Stockpile. Reserve BTC is not to be sold; additional acquisition must be budget-neutral.

BITCOIN Act

Proposed US legislation introduced by Senator Cynthia Lummis to codify and expand the Strategic Bitcoin Reserve, including provisions to accumulate up to 1 million BTC over five years through budget-neutral means including gold certificate revaluation. Status evolving 2025-2026.

Sovereign DCA accumulation

Pattern of national governments (El Salvador, others) buying Bitcoin in small daily increments rather than single large purchases — reducing market impact and political timing risk. El Salvador's daily buys have continued through 2024-2025.

Hydropower-to-Bitcoin model

Sovereign strategy (most cleanly demonstrated by Bhutan) of monetizing otherwise-stranded or low-priced domestic electricity via Bitcoin mining, converting kilowatt-hours into a reserve asset rather than selling raw power.