El Salvador: Bitcoin revolution has only just begun

El Salvador was one of the first countries to make Bitcoin (BTC) a recognized legal tender. This move has logically met with some resistance, but seems to pay off in the long run.

Major progress El Salvador

El Salvador advocates a free market economy and a decentralized approach, which contrasts sharply with the centralized markets in which most financial institutions are firmly rooted.

Since the first step, El Salvador has since grown into the Bitcoin capital of the world. But not everyone is thrilled about this bold move. The success of this ‘experiment’ could encourage other countries to do the same, while a failure could cause other countries to avoid it completely. This is exactly what Bitcoin detractors want to achieve: to discourage other countries from adopting a decentralized approach to their economy.

While there have been some attempts to portray the experiment as a “failure”, it is essential to recognize and commend President Nayib Bukele’s courage in challenging the status quo. As a young and charismatic leader, Bukele deserves recognition for his historic achievements in El Salvador, despite the criticism. Bukele, who took office at the age of 37, has already made significant progress in El Salvador’s history.

Independent and reputable opinion polls on governments in Latin America consistently report that, 3 years after taking office, Bukele enjoys a support rate of between 85% and 95% among citizens. These polls are objective and represent the collective voice of the people. Bukele’s unique style and uncomplicated approach have made him a rising star on the continent who is not afraid to go against the grain. Despite criticism, he has been unquestionably successful in his endeavor.

CHIVO Wallet Downloads

Nearly a quarter of citizens who downloaded the CHIVO WALLET, the government’s Bitcoin payment app, continue to use this app for various payments, according to the US National Bureau of Economic Research. El Salvador has experienced a 52% increase in tourism revenue over the past year, with more than 500 local tourism businesses reporting receipt of Bitcoin payments.

Last September, digital wallet transfers from foreign residents to their families in El Salvador reached $96 million, a 500% increase from March of the same year. In addition, currently 5% of citizens pay taxes with Bitcoin. This is particularly important and essential in a country where 70% of the population does not even have a bank account, despite the gradual implementation of the process.

It is not yet known what exactly El Salvador’s next step in the crypto world will be.