Many of us were thrilled when #Bitcoin became legal tender in El Salvador. Some even relocated to build a new life on a Bitcoin standard. However, the usual gatekeepers of the fiat money system were far from pleased. From day one, they sought to undermine this move, applying pressure wherever possible. As we know, without control over the money supply, their influence crumbles.

Now, four years later, they’ve succeeded in revoking Bitcoin’s legal tender status, reducing its acceptance to a voluntary basis. Amendments to the Bitcoin law have already been pushed through the legislature and will take effect in approximately 90 days. The much-anticipated Volcano Bonds? Likely dead on arrival.

So, what are the key takeaways? First, “money is not an invention of the state,” and any top-down legal tender mandate can be repealed just as easily as it was introduced. Many assumed such a rollback would happen under a different administration, but priorities shifted, and El Salvador ultimately yielded. This underscores a critical point: viable Bitcoin circular economies must emerge from the ground up. If adoption scales organically, legal tender status becomes largely irrelevant.

Additionally, strategic Bitcoin reserves face a similar vulnerability, especially if rehypothecation isn’t strictly prohibited. Gold’s decline as a medium of exchange serves as a cautionary tale for Bitcoiners overly fixated on price appreciation, willing to pump their holdings at any cost—even if it strengthens the very fiat institutions they oppose.

Despite this setback, I remain bullish on El Salvador. Yet, I can’t help but wonder: what does a post-Bukele future look like? Can the current trajectory of progress be sustained 20 years after his departure? This isn’t a call for lifetime rule, but given his outsized role in shaping El Salvador’s Bitcoin experiment, it’s worth considering the long-term implications of his eventual exit.