Bukele believes adopting Bitcoin will provide many financial benefits, tourism, and development opportunities. It also helps El Salvadoreans living abroad, making it easier to send money home.
Bukele tapped a government-owned geothermal firm called LaGeo to build mining facilities around the country’s volcanoes. Bukele appeared dead-set on implementing the currency in everyday life, saying:
“If you go to a McDonald’s or whatever, they cannot say we’re not going to take your bitcoin, they have to take it by law because it’s a legal tender.”
In the country’s capital, some people interviewed relayed their skepticism and mixed feelings. This complicates negotiations with the International Monetary Fund.
It’s unclear whether this is the first domino to fall for Bitcoin or if it will prove a mistake or aberration. Many newer cryptocurrencies offer more potential for everyday use. Bitcoin is considered digital gold — a speculative asset for storing value.
Will geothermal Bitcoin mining in El Salvador make it easier to integrate day-to-day? Bitcoin may make it easier for people in the country to receive and use financial services. 70% of people don’t have access to these services, while the economy relies on people sending money back home from overseas.
