These Governments Are Adopting Cryptocurrency For Payments: What Does It Mean?

How Governments Use Crypto Today

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Which Countries Have Made Bitcoin Legal Tender?

Only two countries have ever made Bitcoin legal tender, and both have pulled back.

El Salvador made Bitcoin legal tender in September 2021 and required businesses to accept it. The government launched the Chivo wallet with a $30 sign-up bonus, but everyday use stayed low. In January 2025, as part of a loan program with the International Monetary Fund, lawmakers made Bitcoin acceptance voluntary, stopped accepting it for taxes and agreed to wind down Chivo. The government has kept adding bitcoin to its national holdings.

The Central African Republic passed a law in 2022 making Bitcoin and other cryptocurrencies legal tender. It reversed that law in 2023.

Which Governments Hold Bitcoin?

Holding bitcoin as a reserve asset has become the more common form of government adoption.

• United States: a March 2025 executive order created a Strategic Bitcoin Reserve funded mainly with bitcoin the government has seized, with any new purchases required to be budget-neutral.
• US states: Texas created a Texas Strategic Bitcoin Reserve, run by the state comptroller, in a law signed June 20, 2025. Other states have considered similar bills.
• El Salvador: the government reports its holdings publicly and kept buying after the 2025 IMF deal.
• Bhutan: the kingdom holds bitcoin earned through state-backed mining powered by hydroelectricity.

Read our news story on the US bitcoin reserve order for the market reaction when it was signed.

Where Can You Pay Government Bills With Crypto?

A few local and state governments have accepted crypto for taxes and fees, usually through a payment processor that converts it to local currency. Colorado began taking crypto for state tax payments in 2022, and in Switzerland the canton of Zug and the city of Lugano have taken bitcoin and some other coins for tax bills. These programs change, so check the tax office's own payment page before you pay.

What Are Central Bank Digital Currencies?

A central bank digital currency is a digital form of a country's official money, issued and controlled by its central bank. Unlike Bitcoin, a CBDC isn't decentralized, and its value equals the country's currency one for one.

The Atlantic Council's CBDC tracker counted 146 countries and currency unions exploring a CBDC in its May 2026 update, covering over 98% of global GDP. Only three have fully launched one for the public: the Bahamas (Sand Dollar), Nigeria (eNaira) and Jamaica (JAM-DEX).

Which Countries Are Piloting CBDCs?

China's digital yuan (e-CNY) is the largest pilot by far and is used in shops, transit and some government salaries. India's e-rupee is the other major retail pilot. The Atlantic Council counts 41 pilot projects worldwide, retail and wholesale.

Is There A Digital Euro?

Not yet. The European Central Bank is preparing a digital euro, but it needs EU legislation first. The ECB says it's preparing a pilot for 2027 and aims to be ready for a first issuance in 2029, assuming EU lawmakers adopt the law during 2026.

Will The US Launch A Digital Dollar?

No, under current policy. A January 2025 executive order bars federal agencies from creating or promoting a CBDC in the US. The House passed the Anti-CBDC Surveillance State Act on July 17, 2025, to make that ban law, but the Senate hadn't passed it as of Nov. 2, 2026. Read our story on the executive order for more.

How Do Stablecoin Laws Fit In?

Several governments have chosen to regulate privately issued stablecoins instead of issuing their own digital money. The US GENIUS Act (S. 1582), signed July 18, 2025, sets reserve and licensing rules for dollar stablecoins. The EU's MiCA rules have covered stablecoins since mid-2024, and Hong Kong's stablecoin licensing law took effect in August 2025. Compare the two biggest dollar stablecoins, Tether and USDC, in our USDC vs. USDT comparison.

Where Is Cryptocurrency Banned?

China banned crypto trading and mining in 2021, though it runs its own digital yuan. A Library of Congress survey found nine jurisdictions with outright bans in its November 2021 update: China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. It found 42 more that restricted banks or exchanges from dealing in crypto. Some of those rules have since changed, so check your own country's current law.

What To Watch Out For

• Legal tender doesn't mean stable. El Salvador's adoption didn't stop Bitcoin's price swings, and the law changed within four years.
• CBDC privacy. A CBDC can give a central bank a detailed record of payments, which is the main objection raised by critics.
• Rules change fast. Stablecoin, reserve and CBDC policies have shifted with elections in several countries since 2021.
• Taxes still apply. Paying a tax bill with crypto is usually a sale for tax purposes, so you can owe capital gains tax on the coins you spend. See how crypto taxes work.

FAQ

Is Bitcoin Still Legal Tender In El Salvador?

Partly. Since January 2025, El Salvador's law makes accepting Bitcoin voluntary for businesses, and the government no longer takes it for taxes. Officials still describe it as legal tender for private use, while the US dollar remains the main currency.

Which Countries Have Launched A CBDC?

Three countries have fully launched a retail CBDC: the Bahamas, Nigeria and Jamaica. China and India run large pilots, and the euro area is preparing a digital euro that depends on EU legislation.

Does The US Have A Digital Dollar?

No. A January 2025 executive order bars federal agencies from creating a US CBDC. The dollar stablecoins sold by private companies, such as USDC, are regulated under the GENIUS Act but aren't issued by the government.

Does The US Government Own Bitcoin?

Yes. The US holds bitcoin seized in criminal and civil cases, and a March 2025 executive order placed those coins in a Strategic Bitcoin Reserve instead of selling them.

Is A CBDC The Same As A Stablecoin?

No. A CBDC is issued by a central bank and is a direct claim on it. A stablecoin is issued by a private company and backed by reserves the company holds, such as cash and short-term government debt.