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Although mass adoption does not materialize, there are enclaves that promote a Bitcoin standard.
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The reform of the Bitcoin Law shows a government pressed by debt.
Aaron Murphy, an American who arrived in El Salvador in search of what he describes as a «Bitcoin paradise,» shares in the social network X: «Some friends of the BTC community plan to leave after Bukele’s decision to accept a loan from IMP ». His words reflect the dichotomy that many residents are going through in this Central American country: is Bitcoin the symbol of a bold and transformative vision, or just a mirage in a nation that struggles to survive in the midst of economic adversity?
The Parliament of El Salvador approved on January 30 a reform to the Bitcoin Law, eliminating the obligation to accept the pioneer digital currency as a means of payment, a key movement to access a loan of 1.4 billion dollars by the IMF. The amendment, backed by 55 votes of the 60 possible, in a congress dominated by the official party new ideas, is interpreted by some as a betrayal of the fundamental principles of Bitcoin, marking a turning point in the country’s ambitious bet for digital currency.
The adjustment responds to IMF pressures, which since 2021 warned about the risks of volatility and money laundering associated with cryptocurrency. However, President Nayib Bukele is demonstrating that The Bitcoin strategy in El Salvador remains firm. Therefore, the country continues to expand its BTC reservation, while promoting it as a value reserve.
Even so, the country’s economic reality raises a painful contrast. In 2024, El Salvador registered an economic growth of 1.2%, which was the second minor of Central America, while the proportion of people in extreme poverty increased from 8% to 10% in the last four years, according to the World Bank. Bukele seeks to reverse this situation, betting on Bitcoin To attract foreign investment and foster innovation, although it recognizes the limitations of its adoption.
This economic gap feeds the fear among expatriates and local analysts that the president’s strategy ends by diluting the initial dream of a fully «bitcoinized» economy. Fear grows since Bukele admitted in recent statements the low adoption of BTC among Salvadorans: «He has not had the expected acceptance.»
Official data confirmed this reality: only 7.5% of the population used Bitcoin in 2024, and cryptocurrency remittances fell 5.6%, evidencing a gap that limits the economic impact of cryptocurrency and reinforces the perception that its implementation has been insufficient to address the daily needs of citizens.
Beyond this, the reform of the Bitcoin Law reflects the pragmatism of a government cornered by debt, but still clinging to the hope that your strategy with Bitcoin will give long -term fruitssuch as attracting foreign investment and promoting technological innovation. However, for residents such as Aaron Murphy, who builds «Casa Conejo» in Los Naranjos in search of a paradise.
Legislative reform: a key adjustment for the IMF, and also for Bitcoin?
As Murphy himself summarizes: «We look for a bitcoin paradise, but we forget that paradise is not found at the borders.» The question now is whether the creation of Satoshi Nakamoto, more than an economic engine, will end up being a symbol of resilience in a country that sails between utopia and austerity.
The answer to the previous question was sought in a recent panel, which brought together the Spanish Lunaticon podcaster with members of the BTC community in El Salvador. There they concluded that many Salvadorans considered disastrous the implementation of the Bitcoin Law. The Wallet goat, an official digital wallet for the adoption of BTC, faced technical problems and a negative public perception, which associated the digital currency with government failures.
For this and other reasons, such as the lack of financial education, the majority of participants in the debate agreed that Eliminate the legal currency status of the digital asset will end up benefiting its adoption In the long term, by reducing the negative perception associated with the obligation.
Additionally, the panel acknowledged that Bitcoin has brought benefits, such as the increase in tourism by 8% in 2024, according to the Ministry of Tourism, and an improvement in the international image of the country. At the same time, projects such as Bitcoin Beach and Bitcoin Berlin seek to keep the flame of innovation alive, and the local community and businessmen expect that, Despite the legislative changes, Bitcoin continues to play a role in the Salvadoran economyespecially in the field of financial education.
However, the path to effective and beneficial adoption for all Salvadorans remains full of challenges. For Murphy and others, the true resilience of El Salvador is not at the borders, but in the ability to adapt and dream, even in the midst of adversity.