A sharp decline in everyday bitcoin spending in El Salvador has surfaced in a report from Jon Atack, a Bitcoin Core contributor who has lived in the country since 2022. In an August 24 social media post, Atack said a restaurant in the surf town of El Zonte — widely known as Bitcoin Beach — told him his lunch payment was the establishment’s first bitcoin transaction in a month.
Staff described BTC payments as having gone from common to practically non existent, with almost all customers now paying by card. When Atack offered a tip in satoshis, the worker said she had forgotten how to use her bitcoin app, showed little interest in reviving it, and called the local payment scene dead. However, a separate traveler reported paying in bitcoin nearby without issue, and acceptance signs were still visible around town.
The report highlights a broader shift in behavior: many holders treat bitcoin as savings rather than cash. Bitcoin reporter Juan Galt argued that when many people expect the price to rise, spending becomes counter-economic, making a circular economy harder to sustain. This HODL mindset reduces the number of coins changing hands for everyday purchases.
The development comes after El Salvador amended its Bitcoin Law to make merchant acceptance optional while keeping bitcoin’s legal tender status. The IMF’s review also found that the public sector’s bitcoin stock had remained unchanged since the loan program was approved, with apparent growth due to moving coins between government-controlled wallets rather than new purchases. The review said purchases stopped in February 2025, while President Nayib Bukele responded on social media that buying would not stop, writing Proof of work > proof of whining.
Atack ended on a more optimistic note, calling El Salvador still a pioneering frontier ahead of most other countries in adoption and legislation.
