However, on a day-to-day basis, the adoption of BTC has not yet penetrated deeply among Salvadorans, with 88% of the population not using the cryptocurrency in 2023.
James and Nicki Malcolmfrom New Zealand, made the decision to move to El Salvador with the dream of immersing themselves in the vision of President Nayib Bukele, who in 2021 made the country a pioneer by adopting the bitcoin as legal tender.
Even though the long-awaited Bitcoin City has not yet seen the light of day, the Malcolms, along with other foreigners and a Salvadoran couple, are leading the initiative to turn Berlin, a picturesque coffee town in eastern El Salvadorin an epicenter of cryptocurrencies.
“Adoption is huge for us – this is what we consider important and how bitcoin will win,” said Nicki, a former mortgage advisor, highlighting the initial support provided by Bukele. Although the president remains firm in his vision of turning El Salvador into a cryptocurrency paradise, the The country’s economic reality presents considerable challenges, including stagnant economic growth, increasing extreme poverty and a record public debt of $25 billion.
Bitcoin: the economic reality of El Salvador
El Salvador’s attempt to receive financial support from the International Monetary Fund (IMF) is hindered for Bukele’s persistence in maintaining bitcoin as legal tender, despite IMF recommendations to eliminate it. Although the Salvadoran leader appears confident thanks to the recent rise in the price of BTC, criticism persists, especially regarding the cryptocurrency’s lack of tangible benefits amid broader economic problems.
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In the day-to-day life of Berlin, the adoption of BTC has not yet penetrated deeply among Salvadorans, with 88% of the population without using cryptocurrency in 2023, According to a survey. The volatility of the largest cryptocurrency by market capitalization and the lack of understanding among the local population raise concerns, while the economy faces more fundamental challenges such as job shortages and rising costs of living.
Despite the criticism, Bukele maintains his commitment to bitcoin and projects an image of modernization and economic astuteness. However, the crackdown on gangs at the expense of civil liberties has been a key factor in maintaining his popularity, even though his tactics have led some to humorously nickname him “The coolest dictator in the world“.
In short, the experience of the Malcolms and other foreigners in El Salvador reflects the complex relationship between Bukele’s cryptographic visionthe country’s economic challenges and the daily concerns of the local population, marking a chapter at the intersection between financial innovation and socioeconomic reality.
Source: Ambito
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