El Salvador's President Nayib Bukele, known for his fervent advocacy of Bitcoin, has acknowledged that his ambitious experiment with the cryptocurrency has not unfolded as he had hoped.
El Salvador's President Nayib Bukele, known for his fervent advocacy of Bitcoin, has acknowledged that his ambitious experiment with the cryptocurrency has not unfolded as he had hoped. In an interview with TIME magazine published Thursday, Bukele, who once dubbed himself the "world’s coolest dictator," conceded that Bitcoin's adoption in the small Central American nation has been slower than anticipated.
In 2021, Bukele made headlines by declaring Bitcoin as legal tender in El Salvador, alongside the U.S. dollar. This groundbreaking policy required businesses to accept Bitcoin if they had the technological means to do so. Bukele also began purchasing Bitcoin to add to the government’s balance sheet, a move that garnered both praise from crypto enthusiasts and criticism from international bodies like the IMF and U.S. politicians.
Despite the bold move, on-the-ground adoption has been sluggish. “Bitcoin hasn't had the widespread adoption we hoped for,” Bukele told TIME. He emphasized, however, that the use of Bitcoin remains voluntary. “It hasn’t had the adoption we expected. The positive aspect is that it is voluntary—we have never forced anyone to adopt it,” he added.
As of now, El Salvador holds 5,857.76 BTC, valued at approximately $348.2 million, according to a government website. Bukele has consistently argued that Bitcoin offers Salvadorans an opportunity to save in an asset that some consider a store of value. In 2021, the government even gifted $30 in Bitcoin to citizens in an effort to encourage adoption.
“If [Salvadorans] use it now, they will probably have gains in the future,” Bukele said in the interview. “If they do not want to use it, this is a free country. I expected more adoption, definitely, but we always prided ourselves on being a free country, free in every way.”
While acknowledging that the Bitcoin initiative “could have worked better” and that there’s still room for improvement, Bukele insisted that it hasn’t led to any negative outcomes. The millennial leader remains immensely popular at home, largely due to other policies, particularly his aggressive crackdown on the country’s notorious street gangs. His tough stance on crime has led to a significant reduction in violence, with 1% of the population being imprisoned as part of his strategy to restore order.
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