On September 7, 2021, El Salvador shook the crypto world to its core when the small Central American country introduced Bitcoin (BTC) as legal tender. Although the hype has pretty much died down, life goes on in El Salvador and Bitcoin remains an important part of the country’s financial system. How is El Salvador doing roughly two years after bitcoin adoption?
Bitcoin President Bukele
El Salvador’s Bitcoin policy can be attributed to its President Nayib Bukele, the 42-year-old Bitcoin proponent. The bitcoin policy started with a bitcoin purchase from the Bukele administration.
However, it is not known exactly how much Bitcoin the country owns. The purchases are not public. Bukele stated in November 2022 that the country would buy 1 bitcoin every day. According to one estimate, the country has about $75 million worth of bitcoins. However, the BTC price has fallen by around 40% over the past two years.
But what does politics mean for the people of El Salvador? After all, that is the main question with such a radical financial change. From the beginning, the intention was that bitcoin could be used for all payments: from groceries to real estate. A national bitcoin wallet called Chivo was also launched, and every El Salvadorian received $30 worth of bitcoin as a gift.
Monica Taher, who until recently was part of the Bukele government, believes that the Bitcoin policy was aimed at increasing citizens’ financial freedom. It took people getting used to, but according to the latest survey, a very large part of the population supports its president. A lot is also invested in education, especially in the area of Bitcoin and economics.
El Salvador on the map
The future success of El Salvador’s bitcoin policy will inevitably depend on the bitcoin price. Bukele is confident in his choice and people seem to be supporting him now. The introduction of Bitcoin has undoubtedly given the Central American country more notoriety. According to Andres Engler, a local journalist, it’s a success.
“It put Bukele on the front page. That is undeniable. El Salvador is a major player in the crypto industry. From that perspective, it’s a huge achievement.”