El Salvador’s Bitcoin Journey: President Bukele Weighs Success & Challenges

In a recent interview with TIME, Nayib Bukele, El Salvador’s pro-Bitcoin president, assessed the impact of his plan to position the country as a hub for the largest cryptocurrency on the market. While he acknowledged that adoption has not met expectations, he emphasized that the overall results have been “net positive.”

Bitcoin In El Salvador

“Yes and no, a lot more could definitely be done,” Bukele said in response to the interviewer’s question about whether Bitcoin adoption in the country has been a success. 

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Bukele noted that while many Salvadorans and “most large businesses” accept Bitcoin—allowing transactions at places like McDonald’s and hotels—the widespread BTC adoption he envisioned has not fully materialized. 

However, the President highlighted the voluntary nature of Bitcoin use in El Salvador, asserting that no one has been coerced into adopting it. Instead, those who have chosen to embrace Bitcoin have reaped the benefits of its rising value.

In terms of financial gains, Bukele pointed out that Salvadorans who have saved in BTC since its inception have likely seen significant gains. “Thank God for that,” he noted, acknowledging the positive financial impact for those who have participated. 

Optimism Amid Challenges 

During the interview, Bukele also addressed “misconceptions” surrounding his administration’s approach to governance, particularly regarding public protests. 

Bukele asserted that El Salvador has maintained a stance of open expression, never resorting to tear gas or violence against demonstrators. This commitment to freedom, according to the President, extends to BTC, which he views as an option for Salvadorans rather than a mandate.

The President further explained that El Salvador has invested approximately $135 million in Bitcoin, now holding around $400 million in its public wallet. 

This investment has not only benefited the government financially, according to President Bukele, but has also attracted international attention and investment, particularly from major Wall Street firms. “It has brought us a lot of positive attention,” Bukele said, acknowledging both the criticism and the benefits that have come from the initiative.

Despite the challenges, Bukele remains optimistic about Bitcoin’s potential to promote financial inclusion and encourage tourism and investment. He noted that the BTC adoption has sparked discussions in other countries, with some now holding reserves in Bitcoin, signaling a shift in global attitudes toward cryptocurrency.

Bitcoin

At the time of writing, the largest cryptocurrency on the market is trading at $56,680, down from a daily high of $61,110 reached on Thursday, but still up 1% in the 24-hour time frame. 

Despite this, the cryptocurrency seems far from retesting its all-time high of $73,700 reached back in March this year amid the increased volatility experienced over the past month, as it has since retraced nearly 20% over the past six months, according to CoinGecko data.  

Featured image from DALL-E, chart from TradingView.com

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