Donald Trump

World

Old Bitcoin

Time

El Salvador’s President, Nayib Bukele, defended his country’s groundbreaking decision to adopt Bitcoin as legal tender, emphasizing its impact on the nation’s global image and economic opportunities.&nbsp; 
In a recent <a href="https://time.com/7015598/nayib-bukeles-iron-fist-el-salvador/" target="_blank" rel="">interview</a> with Time Magazine, Bukele highlighted Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" target="_blank" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noreferrer noopener">BTC</a>) benefits to <a href="https://crypto.news/tag/el-salvador/">El Salvador</a> despite widespread skepticism and limited domestic adoption. 
Bukele said Bitcoin not only “gave us branding,” the embrace of a digital economy helped boost tourism and spur investments. The interview comes three years after making El Salvador the first country in the world to embrace Bitcoin officially.&nbsp; 
Bukele, who graced the cover of Time Magazine as the “world’s coolest dictator,” has become a polarizing figure in global policy. While fewer than 12% of Salvadorans have made a single Bitcoin transaction, according to Time, the President insisted that the primary goal was to reposition El Salvador on the global stage. 
According to <a href="https://crypto.news/el-salvador-adds-162-bitcoins-to-national-holdings/" target="_blank" rel="noreferrer noopener">recent reports</a>, the country holds 5,851 BTC worth approximately $352,300,000 at the time of writing. 
 You might also like: <a href="https://crypto.news/analyst-old-bitcoin-movements-should-stop-to-help-price-surge/"> Analyst: Old Bitcoin movements should stop to help price surge </a> 
<h2 class="wp-block-heading" id="el-salvador-and-bitcoin">El Salvador and Bitcoin</h2> 
El Salvador made global headlines in September 2021 when it became the first country to <a href="https://crypto.news/el-salvador-president-bukele-bitcoin-btc-law-implementation/" target="_blank" rel="noreferrer noopener">adopt Bitcoin as legal tender</a>. This move, driven by Bukele, aimed to boost financial inclusion in a nation where 70% of the population lacks access to traditional banking services.&nbsp; 
The government introduced the Chivo Wallet, an official crypto app, <a href="https://crypto.news/el-salvador-30-btc-residents-bitcoin-adoption/" target="_blank" rel="noreferrer noopener">offering citizens</a> $30 in free Bitcoin as an incentive to download and use the app. Despite these efforts, widespread adoption was limited, with many early users <a href="https://crypto.news/el-salvador-chivo-bitcoin-wallet-compulsory-residents/" target="_blank" rel="noreferrer noopener">not engaging</a> in subsequent transactions after spending the initial bonus. 
The rationale behind El Salvador’s Bitcoin adoption <a href="https://crypto.news/bitcoin-as-legal-tender-in-el-salvador-and-the-car-key-lessons/" target="_blank" rel="noreferrer noopener">was multifaceted</a>. One primary motivation was to provide financial services to the unbanked population and reduce the cost of remittances, which are vital to the Salvadoran economy.&nbsp; 
Bitcoin, particularly through the Lightning Network, also aims to facilitate faster and cheaper transactions, which is crucial in a country where traditional banking infrastructure is often inaccessible. However, the policy has faced significant challenges, <a href="https://crypto.news/el-salvador-american-software-company-chivo-wallet/" target="_blank" rel="noreferrer noopener">including technical issues</a> with the Chivo Wallet and skepticism from the general population. 
 You might also like: <a href="https://crypto.news/donald-trump-teases-us-crypto-capital-of-the-planet-plan/"> Donald Trump teases US ‘crypto capital of the planet’ plan </a> 
<h2 class="wp-block-heading" id="critics-of-bukele">Critics of Bukele&nbsp;</h2> 
Critics of El Salvador’s adoption of Bitcoin, <a href="https://crypto.news/jpmorgan-el-salvador-btc-bitcoin-network/" target="_blank" rel="noreferrer noopener">including major financial institutions</a> like the World Bank and the International Monetary Fund, <a href="https://crypto.news/el-salvador-imf-btc-status-legal-tender/" target="_blank" rel="noreferrer noopener">expressed concerns</a> about the risks associated with Bitcoin’s volatility and its potential impact on financial stability.&nbsp; 
Despite these warnings, President Bukele remained <a href="https://crypto.news/el-salvador-government-bitcoin-symbolic/" target="_blank" rel="noreferrer noopener">committed</a> to the Bitcoin experiment, viewing it as a bold step towards economic innovation and financial independence. 
Bukele remained unapologetic, viewing Bitcoin as a key element of his broader strategy to attract foreign capital and boost tourism.&nbsp; 
In a sense, this logic worked. Damian Merlo, a lobbyist, told Time that the Bitcoin tourism gamble paid off. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 &nbsp;“We call it the Great Rebranding. It was genius…we could have paid millions to a PR firm to rebrand El Salvador. Instead, we just adopted Bitcoin.” 
 Damian Merlo.&nbsp; 
</blockquote> 
 You might also like: <a href="https://crypto.news/bitcoin-price-could-rise-as-exchange-reserves-hit-2024-lows/"> Bloomberg to onboard Polymarket election data </a>

Bukele on Bitcoin: ‘It gave us branding, investment, and tourism’

Table of Contents

crypto.news

Other articles published on Aug 29, 2024

Young Pro Turns $2,000 into $300,000 with Ethereum Classic: BlockDAG Ready to Reapet History & Mi...

Coinbase Lists Three New Altcoins for Futures Trading

Iowa Attorney General Warns of Romance Crypto Scam

Retail Traders are Shorting BTC Again: Should you be Bullish or Bearish on Bitcoin?

Best Altcoins to Buy: Top Picks Based on Market Analysis and Growth Potential

Is Harris’s Proposed Tax on Unrealized Gains Unconstitutional? Legal Experts Weigh In

Join our free newsletter for daily crypto updates!