Bitcoin Experiment A Mixed Bag, Bukele Opines

In an interview with TIME magazine published Aug.29, Nayib Bukele said his Bitcoin bet has had mixed results so far.

El Salvador's Bitcoin-loving president has acknowledged that his BTC gamble has had mixed results, with less widespread adoption than hoped for but ultimately a "net positive" impact.

In an interview with TIME magazine published Monday, Nayib Bukele said his Bitcoin bet has had mixed results so far.

"Yes and no, a lot more could definitely be done," Bukele stated in response to the interviewer’s question about whether Bitcoin adoption in the tiny Central American nation has been a resounding success.

"Bitcoin hasn’t had the widespread adoption we hoped for. Many Salvadorans use it. The majority of large businesses in the country have it, Bukele explained. "You can go to a McDonald’s, a supermarket, or a hotel and pay with Bitcoin. It hasn’t had the adoption we expected."

Bukele pointed out the voluntary nature of Bitcoin adoption in El Salvador, stressing that no one has ever been forced into embracing it. Instead, those who chose to use Bitcoin have reaped the benefits of its surging price.

"If [Salvadorans] use it now, they will probably have gains in the future," he told TIME. "If they do not want to use it, this is a free country. I expected more adoption, definitely, but we always prided ourselves on being a free country, free in every way," the eccentric president stated.

The interview, which was conducted in Spanish and later translated by the magazine, also saw Bukele donning a dark suit to look more "authoritarian."

"Wearing a dark suit to look more “authoritarian” ?

Full interview:

https://t.co/dXR5eVmsM1

Entrevista completa en español:

https://t.co/wGWW9ZgdoO pic.twitter.com/ViGBkIJ3JU

After making Bitcoin legal tender in September 2021, Bukele has overseen the construction of a Bitcoin City at the base of a volcano, the installation of 200 Bitcoin ATMs around the country, and the launch of state-issued Bitcoin bonds.

Despite these efforts and bullish comments from Bukele, a recent survey by the Salvadoran Foundation for Economic and Social Development showed that only 16.8% of Salvadorans reported having used Bitcoin in the past 12 months.

Moreover, the country's Bitcoin trust fund, which was intended to facilitate the conversion of Bitcoin to dollars for everyday transactions, has yet to be fully utilized due to low crypto demand among the local population.

On the other hand, El Salvador's Bitcoin gamble has attracted international attention and, according to Bukele, also brought in new investments and tourism.

"It gave us branding, it brought us investments, it brought us tourism," he opined. "I do believe that the positive outcomes outweigh the negative, and the issues that have been highlighted are relatively minor."

Bukele also highlighted El Salvador's "First Mover" advantage, which he said is evident in Wall Street companies expanding into the crypto sector and Bitcoin featuring prominently in this year's U.S. presidential election.

"I’m not going to say it’s the currency of the future, but there’s a lot of future in that currency," the Salvadoran president optimistically concluded.