This study examines the reason why the government of El Salvador took the decision to make bitcoin a legal payment instrument for the country as well as being the first country to adopt the digital currency. This research aims to find out what the reasons behind the legalization of bitcoin carried out by El Salvador under the leadership of nayib bukele and what the goals and role of the government are to make it happen. The research method used in this study uses a literature review. The results of this study indicate that the application of public policy in legalizing bitcoin as a legal tender in El Salvador aims to improve the welfare level and the economy of the people of El Salvador by reducing the costs incurred from the enormous amount of remittances in El Salvador and opening up opportunities for investors to invest. capital in El Salvador. This study recommends the need to anticipate and take advantage of the potential that can occur from the legalization of this digital currency given the large fluctuating level of bitcoin.