El Salvador’s President Nayib Bukele is doubling down on his bold decision to adopt Bitcoin as legal tender, despite ongoing skepticism and challenges. In a recent interview with Time Magazine, Bukele defended the move, highlighting the positive impacts Bitcoin has had on the country’s global image and economy.
Bukele pointed out that Bitcoin has given El Salvador significant branding benefits, attracting tourism and investment that might have been harder to achieve through traditional means. While fewer than 12% of Salvadorans have actively used Bitcoin, the President argues that the real value lies in the country’s repositioning on the global stage.
El Salvador’s Bitcoin experiment, which began in September 2021, aimed to boost financial inclusion and reduce remittance costs in a country where traditional banking is scarce. Although the Chivo Wallet, introduced as part of this initiative, faced technical difficulties and did not achieve mass adoption, the experiment still managed to make headlines worldwide. Bukele views Bitcoin as a strategic tool for economic innovation and international visibility, despite the criticisms and warnings from financial institutions about Bitcoin’s volatility and potential risks.
By embracing Bitcoin, Bukele believes El Salvador has successfully rebranded itself on the global stage, a move that Damian Merlo, a lobbyist, describes as “genius.” The adoption of Bitcoin has not only highlighted the country’s innovative spirit but also created new opportunities for tourism and investment.
