IMPORTANT POINTS:
- Nayib Bukele admitted that Bitcoin adoption in El Salvador has been lower than expected.
- Bukele stressed that the use of Bitcoin is optional and not mandatory for citizens and businesses.
- Only a few large franchises accept Bitcoin, while most businesses and citizens show indifference.
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El Salvador’s President Nayib Bukele, known for his staunch support of Bitcoin, recently admitted that his ambitious experiment with the cryptocurrency has fallen short of initial expectations. In an interview published Thursday by TIME magazine, Bukele, who previously called himself the “world’s coolest dictator,” acknowledged that Bitcoin adoption in the Central American country has been lower than anticipated.
Bukele, who announced the legalization of Bitcoin as legal tender alongside the US dollar in 2021, confessed that the cryptocurrency has not had the widespread acceptance he had hoped for. Despite efforts to incorporate Bitcoin into the country’s economy, Bukele stressed that implementation has been a challenge.
“Bitcoin has not had the widespread adoption that we had hoped for,” Bukele said. “The positive aspect is that it is voluntary; we have never forced anyone to adopt it.” This voluntary approach reflects the government’s policy of not forcing citizens or businesses to accept Bitcoin, but rather offering them the option to do so if they wish.
Since Bukele introduced the policy in 2021, businesses in El Salvador were forced to accept Bitcoin if they had the technology to do so. The government also acquired cryptocurrencies to include on the official balance sheet. However, the reality on the ground showed that many businesses still did not accept Bitcoin, and adoption by the population remained slow and uneven. During a visit by Decrypt to the country in that period, it was observed that only a few large franchises, such as McDonald’s, accepted Bitcoin, while the rest of the businesses and citizens showed indifference towards the new technology.
Despite the difficulties and criticism, President Bukele continued to defend his decision and reaffirmed his commitment to cryptocurrency, highlighting that the adoption policy is a free choice for the citizens and businesses of El Salvador.
In short, although the integration of Bitcoin into the Salvadoran economy has faced significant obstacles and has not met initial expectations, the Bukele administration has maintained a flexible and voluntary approach to its implementation.
