Over two years have passed since El Salvador, the Central American nation, embraced Bitcoin (BTC) as legal tender. This bold move was not only a long-term plan for the country but a source of newfound hope for its citizens.
In the world of Bitcoin, the motto is simple: “don’t trust, verify.” This principle inspired the Bitfinex team to create a documentary titled “Don’t Trust… Verify,” offering viewers a firsthand perspective on how El Salvador adopted Bitcoin.
The documentary is set to premiere on October 22 in Lugano, Switzerland, but BeInCrypto has already had an advance screening.
From Despair to Hope: El Salvador’s Youth
Prior to 2021, El Salvador was notorious for its high crime rates and the omnipresence of gangs, which cast a shadow over the nation’s security landscape. For many, it seemed like a place devoid of hope. Families were separated as parents sought job opportunities in the United States, and others found themselves incarcerated for their involvement with gangs. Young people grew up with limited prospects and a sense of hopelessness.
However, change was on the horizon. Bitcoin Beach, an initiative in El Zonte, a beach town in El Salvador, became a beacon of hope. Entrepreneurs and tourists in the area began using Bitcoin for transactions, and local workers started receiving their salaries in digital currency. This marked the beginning of a transformative journey for the youth of El Salvador.
Roman Martinez, co-founder of the community initiative “Hope House,” highlighted the limited access to financial services in El Salvador. He spoke about the lack of financial education in the country and the absence of bank accounts among many Salvadorians. Bitcoin emerged as a force for change, pushing citizens to gain financial education and empowering the unbanked. As Martinez put it, “the President made Bitcoin a legal tender, he gave all of us a place to be excited for the future, a place to come and build, a place to come and dream.”
Hope House’s work revolves around four key pillars: education, recreation, spirituality, and empowerment. It aims to educate the youth, providing them with a newfound sense of hope, thereby dissuading them from leaving the country and inspiring them to contribute to its development.
International Perspective: Transforming El Salvador’s Image
Not only has Bitcoin brought hope to El Salvador’s youth, but it has also begun to reshape the country’s international image. The diaspora of Salvadoran citizens from around the world is returning to their homeland, bringing investment, talent, and expertise. Bitcoin enthusiasts are moving to El Salvador to experience the everyday use of digital currencies and to support the nation’s Bitcoin experiment.
Alejandro Zelaya, the Finance Minister of El Salvador, confirmed that tourism in the country has seen at least a 30% increase following the adoption of Bitcoin as legal tender. The country’s international image, once marred by violence, has been revitalized. El Salvador is now recognized globally as an innovative nation promoting economic freedom and globalization.
While Bitcoin’s Lightning network enables near-instantaneous payments, its price volatility remains a potential challenge to full-fledged adoption. Yet, nearly 100 merchants in El Zonte, the Bitcoin Beach town, accept Bitcoin payments. Additionally, over two million El Salvador citizens downloaded the government-backed Chivo wallet after receiving a $30 incentive. However, the sustained use of the Chivo wallet is still uncertain.
Bitcoin adoption is acknowledged as a gradual process. The CTO of Bitfinex and Tether, Paolo Ardoino, compared it to the adoption of the euro in European countries, noting that it took nearly six years for widespread acceptance. Bitcoin adoption in El Salvador is optional, and it requires time for education and familiarity.
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Educational initiatives like Mi Primer Bitcoin have played a vital role in teaching students about Bitcoin, lightning networks, nodes, double-spending, and Bitcoin halving. The effort to spread Bitcoin knowledge among the youth is an essential part of this transition.
Despite the challenges, the adoption of Bitcoin in El Salvador represents a significant milestone in the world of cryptocurrency. The country’s unrealized losses, as shown on Nayibtracker, are a testament to the bold experiment. As Vice President Felix Ulloa emphasized, the country hasn’t lost anything because it has yet to sell any of the Bitcoin it purchased.
El Salvador’s journey with Bitcoin continues to be an inspiring tale of hope, empowerment, and transformation.
