El Salvadorans Still Doubt President Bukele's Bitcoin Vision
JAMES and Nicki Malcolm moved to El Salvador from New Zealand to become part of a bitcoin dream sold by President Nayib Bukele in 2021, when he made the Central American country the first in the world to accept cryptocurrencies as legal tender.
A few months later, Bukele designed his plans for Bitcoin City, a tax-free crypto paradise backed by geothermal energy from the volcano, to a number of fans at a beach club including his avatar on a spacecraft.
However, as Bukele's popularity continued to rise ahead of this week's second round presidential election, the construction of Bitcoin City has yet to begin. However, without being discouraged and still inspired, Malcolm along with 15 other foreigners and a pair of El Salvadorans, have assured more than 100 businesses to accept bitcoin in a mountain town that produces coffee called Berlin in eastern El Salvador.
"The adoption is very important to us - that's what we think is important and how bitcoin will win," said Nicki, a former mortgage adviser who is part of an attempt to turn Berlin into its own crypto mekka. "Bukele has raised a flag on the ground."
However, Bukele's decision to push El Salvador into a cryptocurrency haven was not approved by some economists, highlighting that bitcoin has not brought significant benefits to the economy as a whole. Economists like Tatiana Marroquin have questioned Bukele's decision to risk some unknown tax funds on risky investments.
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To date, most of El Salvadorans still ignore bitcoin, mainly because of the cryptocurrency volatility in a cash-based economy where many people live from hand to mouth. Nearly twenty people interviewed by Reuters said they were not interested in understanding cryptocurrencies, but they were increasingly concerned about the lack of work and rising cost of housing and food.
Despite some bitcoin transactions being carried out in El Salvador, many have complained about the problem with Chivo, a digital wallet being made in a hurry in 2021 by the government for Salvadorans to store and send bitcoins.
Thus, Bukele's plan to make El Salvador a cryptocurrency haven continues to raise doubts among most of its population, despite having a positive impact on tourism and most local businesses.