In 2021, the crypto space was shocked beyond its dreams when a conversation that started on Twitter between the El Salvadorian president and a tweep led to ground-breaking history. It was a mere conversation on social media that, after months, inspired Bukele, the Prime Minister of El Salvador, to adopt bitcoin as a legal tender in El Salvador.
On that September day, after El Salvador officially announced that the country was adding bitcoin as a legal two tender and could not be used freely, the crypto space was filled with unbridled excitement. Finally, many crypto enthusiasts, the world was beginning to come to terms with crypto’s immense power to change the world. In the same breath, crypto naysayers were quick to point to Bukele’s ‘undemocratic’ move, one that many of them claimed would ruin El Salvador’s economy.
But it’s been months after that decision was taken in 2021, and it seems as though El Salvador made the rich decision.
Or did they?
The backlash from the rest of the world has not stopped. Many still think it was a stupid move from Bukele at the time, and that it was setting a wrong precedence that other presidents might follow. The strongest of these objections from economists and analysts who were against cryptocurrency and blockchain technology was that El Salvador was a bitcoin Experiment.
Who has been Criticising El Salvador?
When a country like El Salvador goes against ‘internationally accepted financial rules’, there is bound to be backlash. And when the contrarian decision is on something as controversial as bitcoin as legal tender, the backlash would be more.
So, it was no surprise to many when the International Monetary Fund (IMF) came to El Salvador, taking veiled jabs at the country, and calling President Bukele’s decision to adopt bitcoin as a legal tender in El Salvador a move that could be dire.
The argument from two top IMF chiefs, Tobias Adrian and Rhoda Weeks-Brown was that countries that legalized bitcoin as a legal tender stood at a high risk of allowing prices of domestic goods to become so high that many of the citizens might be unable to pay for them.
The yardstick supporting this argument is that bitcoin’s volatility made it hard to properly manage price fluctuations.
They also argued that because it was easy for bitcoin to be used for anti-money laundering activities, it was dangerous to allow bitcoin to become a legal tender. Terrorists and money launderers can easy change bitcoin on the best crypto exchange platforms, move the money around to fuel terrorism and be unnoticed.
The validity of their arguments, while it can be debated, were partially true.
Yes, it would be somewhat hard for the government who adopted crypto to make proper financial plans because of the volatility of the digital currency.
It is also very possible for money launderers to move laundered money around…
But there were more positives to bitcoin as legal tender than there were negatives…if anyone chose to look hard enough.
And the president of El Salvador Nayib Bukele is proving, in one of his latest tweets, that adopting bitcoin as a legal tender was a smart financial decision, and his country is reaping the benefit of that decision.
What benefits is el salvador enjoying now?
President Nayib Bukele’s stubbornness with his decision to stick with bitcoin despite the backlash has paid off eventually.
No, it is paying off.
In a tweet, President Bukele said that what was called a bitcoin experiment by the rest of the world was no more than the rest of the worldching, from the stands, how mass adoption of crypto can change a country’s economic fortunes.
President Bukele also reiterated in that tweet that his decision was for the good of the country, and that fiat currency was walking on its last strand of life. It is game over for FIAT, he tweeted.
He also said that El Salvador was the spark that would ignite the revolution.
So, before we unpack all that President Bukele said, it is important to know that President Bukele also came under a lot of heat from El Salvadorians. Western media reported that some citizens felt that the adoption of bitcoin was against the country’s democratic will, and should be rescinded.
Now, back to El Salvador’s success, or failure, story.
For President Bukele, his decision is yielding positive results for the country.
El Salvador has made lots of money from bitcoin surplus, bitcoin profits, and has built infrastructures that are benefiting its citizens and will benefit its citizens years in the future.
What has El Salvador done with the profits?
President Bukele has continued to highlight how profitable adopting bitcoin a legal tender has been for El Salvador. From partnering with Bitso, a cryptocurrency exchange just like Redot.com, to building strategic partnerships with other blockchain-focused start-ups around the world, El Salvador is rightly positioning itself as a safe haven for bitcoin. And the financial rewards, in less than one year of adoption, are staggering, to say the least.
El Salvador has built over 20 schools from the profit it has gotten from bitcoin.
The president also announced that a Veterinary hospital will also be built from the profits realized from bitcoin.
These financial gains are testament of how rewarding cryptocurrency is, not just for individuals, but for countries as well.
What’s next for El Salvador and president Bukele?
President Bukele is not relenting on his bullishness on crypto, especially bitcoin. He remains firmly convinced that cryptocurrency is the future, and that his country will lead the path for financial enlightenment to other countries still contemplating the idea of bitcoin and other crypto as legal tender.
In his bullishness and celebration of bitcoin’s 21 million BTC limited supply, El Salvador bought 21 BTC.
Moves such as this from El Salvador further strengthens their claim to the international community, especially those in big government-owned institutions, that El Salvador was not in any way going back on their words and belief in cryptocurrency. The backlash and criticisms notwithstanding, El Salvador was leading the crypto revolution, and soon, other countries will catch the fire and do away with fiat currency for good.