Bitcoin policy El Salvador: a “failed” experiment worth $329 million

In 2021, El Salvador made history by becoming the first country ever to adopt Bitcoin (BTC) as a legal tender. Today, the Salvadoran government and especially its president’s belief in Bitcoin policy appears to be as strong as ever, but there is also controversy. The Central American country’s Bitcoin policy has already received some criticism. Now also from the Central American human rights organization Cristosal.

Failed Bitcoin project in El Salvador?

In a new report, Cristosal raises serious questions about Bitcoin policy. For example, the transparency and effectiveness of politics would be very inadequate. The organization also assumes that the population itself has no preference for Bitcoin.

Cristosal reports that the government of El Salvador has already invested a total of $329 million in the Bitcoin project. However, the organization is concerned about the legality of the investments, the lack of transparency and, above all, the lack of oversight.

It also points to the alleged lack of enthusiasm among the country’s population. Although President Bukele has full confidence in Bitcoin, people themselves are less convinced. Only one percent of the total payments made in El Salvador in the first half of 2023 were processed using the national “Chivo” wallet. A survey also concludes that 71 percent of El Salvadorans do not believe Bitcoin will improve their lives.

Bitcoin education in El Salvador

Two years ago, El Salvador made a special decision. Or, as some would say, irresponsible gambling. There will always be opponents. But time will tell whether El Salvador’s Bitcoin policy will actually be a success or not. At the moment, it seems too premature to draw conclusions about the country’s Bitcoin policy.

Of course, there are a lot of negative things to say about the controversial election, but there are certainly bright spots too. For example, it was recently announced that the country would invest more in Bitcoin education. Starting in 2024, children in all public schools will learn about Bitcoin and other economic topics.

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