El Salvador began accepting Bitcoin as legal tender in September 2021 and continues to be at the forefront of the movement toward mass crypto adoption. President Nayib Bukele announced today that a greater number of citizens have digital wallets than traditional bank accounts in his country.
There is one country on Earth, where there are more people using #Bitcoin wallets than bank accounts.
Prolly nothing. https://t.co/bZb4M6XZZZ
— Nayib Bukele 🇸🇻 (@nayibbukele) November 15, 2021
El Salvador and the adoption of Bitcoin
During the initial stages of the switchover to Bitcoin as a legal tender, the Central American nation was heavily criticized. Several world leaders warned El Salvador about the monetary consequences of entering the digital currency market. The president cited the large portion of his country’s population without access to a banking system, over 70% at the time, as his main reason for supporting the switch to Bitcoin.
El Salvador’s transition to Bitcoin was not immediately perceived as a victory by its citizens, as protests, some violent, erupted in opposition to its adoption, but things quickly changed and the country and its people began to realize the benefits of adopting Bitcoin as a financial tool.
There are already hundreds of Bitcoin ATMs in El Salvado and the country has ramped up efforts to add more features to its Bitcoin network. Additionally, the country has been aggressive in buying any dips in Bitcoin’s price, adding over 800 Bitcoins when the valuation dropped to $30k-40k. The price of bitcoin rapidly recovered from the previously stated lows, allowing El Salvador the financial flexibility to redistribute its earnings towards the construction of new schools and hospitals as well as improving its infrastructure.
El Salvador’s approach to taking control of its financial future via digital currencies has been noted by other countries throughout the world. El Salvador remains the prime example of the benefits that Bitcoin can have as a vehicle for reengineering the finances of an entire country, even as other nations are integrating cryptocurrencies into their financial ecosystems.
There is a good chance more nations will follow El Salvador’s example of building wealth by supporting Bitcoin and cryptocurrencies as a whole.