President Nayib Bukele credits Bitcoin for transforming El Salvador’s legacy in new Tucker Carlson interview
El Salvador’s use of bitcoin as a legal tender has not only cemented the country’s heritage, but has also had a significant positive impact on the tourism sector.
According to President Nayib Bukele, in a interview with Tucker Carlson, the tourism industry has increased by 95% since the country embraced Bitcoin.
El Salvador’s ‘Bitcoin Beach’ Boosts Tourism
“We’ve increased tourism by 95%, and that’s partly because of Bitcoin,” he said. “There are many bitcoiners who want to go to the country where bitcoin is legal tender, we have bitcoin conferences,” Bukele said.
The Minister of Tourism, Morena Valdez, also confirmed that the local tourism industry went up by 30% in the first three months after the introduction of Bitcoin.
However, after the cryptocurrency crash of 2021-2022, the value of bitcoin fell by 70% compared to November 2021. During that time, President Bukele had invested approximately $150 million, which is equivalent to 4% of El Salvador’s national reserves, in Bitcoin. In an effort to manage cryptocurrency market volatility, Bukele frequently announced on Twitter that he was “buying the dip.” In June 2022, he bought another 80 Bitcoins.
Bitcoin has rebranded El Salvador’s image
Aside from the positive impact on tourism, Bukele claimed that El Salvador has received a lot of private investment since adopting bitcoin as legal tender. He claimed that the adoption has led to the rebranding of the country’s heritage, which was once known as one of the most violent places in the world.
The Central American state had reached a peak of 103 murders per 100,000 inhabitants a few years ago. But with the introduction of Bitcoin, the country has been able to shift its focus to more positive initiatives, attracting investors and tourists alike, with Bukele crediting Bitcoin for helping to rebrand the country.
Bukele’s praise for Bitcoin also stemmed from his criticism of the actions of central banks, such as the US Federal Reserve, which he accused of devaluing people’s wealth and erasing their savings, causing consumers to look toward decentralized financial instruments.
Bitcoin as a geopolitical force
“You can’t ban it. It is uncensorable,” Bukele added.
Bukele’s stance on the benefits of Bitcoin is in line with the growing interest in cryptocurrencies globally. The use of cryptocurrencies as a legitimate means of payment is on the rise, and countries such as Ukraine, Nigeria and Venezuela are also exploring the idea of adopting digital currencies.
However, the adoption of bitcoin in El Salvador has not been without controversy. Critics have raised concerns about the cryptocurrency’s volatility, which could lead to a lack of stability in the country’s economy, Bukele admitted.
Some have also criticized Bukele’s decision to adopt bitcoin as an attempt to curry favor with the country’s large population of young people, who are more open to using digital currencies. Add to that concerns that the introduction of Bitcoin may not be a long-term solution to the country’s economic woes, and its falling price since El Salvator invested in the cryptocurrency.
Despite the criticism, Bukele remains optimistic about the prospects of bitcoin, and the positive impact it could have on the country’s economy. He told Carlson that the use of Bitcoin has ultimately been a game-changer for the country, predicting that other countries will soon follow suit.
“El Salvador is a leader in the world when it comes to cryptocurrencies. We are making history, and other countries will soon follow.”
