The currency of El Salvador is the United States dollar (USD). In 2001, El Salvador adopted the U.S. dollar as its official currency, replacing its previous currency, the Salvadoran colón. This dollarization aimed to stabilize the economy, attract foreign investment, and facilitate international trade. The U.S. dollar remains a cornerstone of El Salvador's financial system and is widely used in everyday transactions. Additionally, in 2021, El Salvador became the first country to legally recognize Bitcoin as a legal tender, allowing for greater flexibility and innovation in its financial framework.