El Salvador President: Bitcoin Has Not Been as Widely Adopted as Expected
Date: 2024-08-30 Author: Oliver Abernathy Categories: IN WORLD
El Salvadoran President Nayib Bukele, known for his support of cryptocurrencies, said that while Bitcoin has had a significant impact on the country’s economic growth, its adoption has not lived up to expectations.
Bukele, who recently appeared on the cover of TIME magazine, said El Salvador’s strategy for Bitcoin has been a “net positive” overall. However, adoption has been lower than expected. He stressed that the digital asset plays an important role in the lives of many Salvadorans in everyday payments. The country has never forced its citizens to use it, but has offered it as an option, the president noted.
“It has not been adopted to the level we expected,” he said. “I expected more, definitely, but we have always been proud that our country is free in every sense.” Bukele also urged people to use Bitcoin now, as “they will probably make a profit in the future.” He also emphasized that despite the delay in Bitcoin adoption, the positive impact on the country, from increased visibility to increased tourism, has not had any negative consequences.
“I think it could have worked better, and we still have time to improve, but nothing negative has happened. On the contrary, it has brought us visibility, investment, and tourism.”
Bukele sees a “great future” for Bitcoin. El Salvador was one of the first countries to accept the cryptocurrency as legal tender, starting in September 2021.
To date, El Salvador has 5,858 thousand BTC in Bitcoin reserves, which is valued at $345.61 million according to Arkham. The country is also actively buying 1 BTC per day until Bitcoin becomes “unavailable for fiat currencies.” This has made El Salvador one of the richest countries in the world in terms of Bitcoin reserves. “You have the largest funds in the world right now, literally the largest,” Bukele told TIME.
Bitcoin Focus vs. Adoption in El Salvador Bukele notes that the digital asset has generated a lot of positive attention in the country, despite some criticism. In addition, El Salvador being the first to adopt Bitcoin “gives us a little bit of an advantage,” he added.
“I think it could have been a lot better. I wouldn’t call it a resounding success.” However, the president remains confident that the positives outweigh the negatives.
