President Nayib Bukele’s bold initiative to introduce Bitcoin as legal tender in El Salvador has been a focal point globally, yet the adoption hasn’t reached the expected heights. Bukele shared his nuanced perspective on the country’s digital currency journey in an interview.
Although Bitcoin is regularly used by Salvadorans and businesses, overall adoption has not met initial hopes.
Bukele Explains Why Bitcoin Did Not Achieve Widespread Adoption
Bukele believes that slow adoption is because Bitcoin has always been a voluntary option in the country.
“You can go to a McDonald’s, a supermarket, or a hotel and pay with Bitcoin. It hasn’t had the adoption we expected. The positive aspect is that it is voluntary; we have never forced anyone to adopt it. We offered it as an option, and those who chose to use it have benefited from the rise in Bitcoin,” Bukele said.
Moreover, El Salvador is trying to increase Bitcoin awareness by emphasizing education. The government recently inaugurated a Bitcoin training program for 80,000 public servants, as reported by BeInCrypto.
Read more: How To Get Paid in Bitcoin (BTC): Everything You Need To Know
Stacy Herbert, Director of the Bitcoin Office, is leading this educational charge. She is orchestrating the development of a Bitcoin Module at El Salvador’s Higher School of Innovation in Public Administration.
Despite the slower adoption pace, Bukele remains optimistic about the financial outcomes for early adopters. Those who initially invested in Bitcoin have witnessed considerable financial growth.
“Thank God for that. It’s good that people have those earnings. Those who decided not to use it did not have those gains. If they use it now, they will probably have gains in the future. If they do not want to use it, this is a free country,” Bukele stated.
Highlighting the government’s investment success, Bukele noted that El Salvador’s initial $135 million Bitcoin investment has grown substantially. Indeed, the Bitcoin Office’s mempool data shows that El Salvador currently holds 5,85775 BTC, which are now worth over $345.66 million.
However, Bukele believes that Bitcoin’s value extends beyond financial metrics. He pointed out the enhanced engagement from major financial institutions and other countries, which now view Bitcoin more favorably in their economic strategies.
“What it has brought is financial inclusion for many people and profit for many others. It has brought profit to the country. The fact that major Wall Street companies are now engaging in it—something that seemed unthinkable three years ago when we did it—shows its impact. Some countries already hold reserves in Bitcoin or are investing in Bitcoin and Bitcoin mining. It is already becoming a topic of debate in the US presidential campaign,” Bukele stated.
Despite the criticisms and moderated adoption pace, Bukele views Bitcoin’s influence as predominantly positive. The President cited a report from the International Monetary Fund, which confirmed that the expected risks associated with Bitcoin in El Salvador had not materialized.
Internationally, Bukele continues to advocate for using cryptocurrencies, especially Bitcoin, to promote El Salvador’s economic and technological development. His government also presented ambitious proposals, such as the creation of Bitcoin City, an initiative to build a city driven by volcano geothermal energy that would serve as a global center for cryptocurrencies.
In an interview with BeInCrypto, Manuel Ferrari, co-founder of Money On Chain, emphasized Bukele’s Bitcoin strategy.
“Bukele is taking advantage of relatively stable economic conditions to introduce Bitcoin slowly and steadily into Salvadoran society, which will ensure the transition from a Dollar-based society to a Bitcoin-based one,” Ferrari told BeInCrypto.
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