n 2021, President Nayib Bukele decided to make Bitcoin legal tender, meaning that all businesses by law has to accept Bitcoin as a means of exchange. Moreover, El Salvador started their first Bitcoin investment with $135 million dollars, which was a strategic and successful move from that part of the country. Their investment has now accumulated approximately 5,800 BTC and their investment has now risen to $400 million dollars. People in the nation benefited from the venture in terms of profits and improved access to capital.
Financial Inclusion Boost
Bitcoin has enhanced financial stability and access to the citizens of El Salvador as Bitcoin is now legal tender and accepted by law by all establishments across the country. Furthermore, Bukele acknowledges the fact that since Bitcoin became legal tender, it has helped the country in many different ways, such as increased tourism, increased interest in investment in the country and branding benefits.
Global Bitcoin Trends
The president also points out that Bitcoin is becoming more and more important for the global economy and has attracted the attention of large organizations, this is highlighted by the fact that bitcoin became the main topic in the US presidential campaign.
Future Outlook
Although noting that Bitcoin adoption has not reached its full potential yet, Bukele is confident that Bitcoin has a bright future in El Salvador and the whole world but could take some time for this to occur.
El Salvador's Bitcoin Adoption
El Salvador’s experience of adopting Bitcoin can help to understand the advantages of using cryptocurrencies at the state level, starting with the financial aspect and ending with the awareness of the country around the world. Since Bitcoin has been adopted as legal tender in El Salvador and had positive outcomes, It could motivate and influence other countries to do the same.
