According To Its Vice-President, Bitcoin Adoption Is Helping El Salvador’s Rebirth

Several reports about El Salvador’s security policies, economic recovery, bond strength, and even tourism booming due to the influence of bitcoin and its community are part of the news about this Central American country. We had an exclusive interview with vice-president Felix Ulloa to understand this news better.

At the end of July, Bloomberg reported that despite being concerned about the country’s adoption of bitcoin as legal tender in 2021, Wall Street investors have been interested in the growth of El Salvador’s bonds. The 70% returns in 2023 are the best-performing among bonds from emerging markets. For example, even with a return of 180% on its position, Converium Capital Inc. decided to hold it, but why?

For Vice-president Ulloa, this is not a random issue, “but is the result of applying a financial policy from the government of the president Nayib Bukele, exercised by our entities in charge.” And it’s also related to bitcoin. In fact, for Ulloa, it’s clear that the Bitcoin
BTC
Law was a crucial element in the new position that El Salvador took globally.

“There were reactions in both directions. Some multilateral organizations initially made objections. Still, the enthusiasm that started in the sphere of the digital economy, with bitcoiners, where El Salvador, having positioned itself as the first country to adopt a cryptocurrency as legal tender, was at the forefront and attracted many investors who are in fact installed in Salvador,” he explained.

As Forbes previously reported, Bitcoin companies like Strike and Fold have plans to operate or expand to El Salvador. According to Ulloa, more than 80 companies in the Bitcoin industry are working in one way or another from El Salvador. He also pointed to the country’s bitcoin mining, with Volcano Energy and its products as one of the pioneers.

This technological approach and the security boost due to the decisive war against gang violence policies took the attention of big players like Google
GOOG
or Meta, which have plans to collaborate and operate within El Salvador. The goal is the “modernization and digitalization of the government of Salvador” and to fight corruption among government officials. “We are certain that with a partner with Google and a recently issued law that will allow development,” Ulloa underscored.

As Santander Markets explained in mid-September, Vice-president Ulloa also explained that security and bitcoin have mainly driven the tourism boom. For him, the affluence of tourists is facilitated by adopting BTC since it’s easier for them to pay for goods and services in the country without worrying about currency exchanges.

“Without a doubt, tourism and the use of digital currencies go hand in hand and are a sign of that future and the rebirth of our country,” Ulloa said.