The Bitcoin Circular Economy Summit just took place in El Salvador’s Bitcoin Beach, and what an event it was. The invite-only summit saw two days of presentations from communities from across the world, from Indonesia to Peru, from Africa to Bolivia. The summit saw an alleged 29 different countries represented among the small crowd of perhaps 60 attendees and speakers. 

The event was put together by the Bitcoin Beach team, lead by Mike Peterson and Roman Martinez, the BCES took place in El Zonte’s community center, a new location built up to support El Zonte’s growing population and economy.  

The topics covered ranged from overviews of various Bitcoin Circular Economies (BCEs), to discussions about strategy, tooling, financial sustainability, economic theory, and even education for leaders to become more effective communicators and fundraisers. 

Attendees told stories of incredible success with brick and mortar adoption in countries with failing currencies, of eye-watering transformation, growth, and gratitude from remote communities apparently forgotten by civilization, of hope and good-hearted behaviour demonstrated by the long reach of Bitcoin donors and Bitcoin activists, looking to deliver sound money to the furthest reaches of the world. 

The Bitcoin Beach White Paper

Since 2019, El Zonte’s Bitcoin Beach has become a world-renowned brand, the biggest success story in the Bitcoin circular economy world. Its novel story has been told many times, but some key takeaways were discussed in depth at the summit, providing an overview of what is documented in detail in the Bitcoin Beach White Paper. 

Concentrate Adoption in one Location

BCE leaders advised against taking a shotgun approach to Bitcoin adoption, especially when it comes to brick-and-mortar-like stores, and deep impact social work. Choose a town, street, or specific community and work hard to get mass adoption in a limited location first. This arguably benefits from multiple network effects seen in branding. Instead of random locations across a country accepting Bitcoin, a single location can attract tourists in higher numbers, resulting in more bitcoin payments being made to merchants, which they need to see to remain motivated.  

This contrasts a classic scenario of less organized attempts at getting brick and mortar adoption, where the shop clerk downloads the Bitcoin app but only sees bitcoin spenders show up once or twice a month. Volume strengthens the connection between Bitcoin and that local community, resulting in more sustainable interest and adoption. Concentrating the Bitcoin brand in one town or street in a city leverages commonly seen marketing strategies, where multiple stores of the same type cluster together, to benefit from each other’s broad advertising efforts.

Build a High-Trust Team

“Don’t be hasty in who you bring along,” said Mike Peterson on stage when discussing the Bitcoin Beach White Paper. People will want to join, but it is important not to rush into relationships with people you don’t know well. It is better to build a small team of high-trust, well-known individuals than grow too fast and take unnecessary risks. 

Bitcoin not crypto

The topic of crypto also came up, as donations are often offered to social impact communities of this sort in a wide range of cryptocurrencies; however, speakers and panelists all agreed that keeping Bitcoin as the main brand and flag was crucial. One of the reasons is the wide proliferation of crypto-related scams across the world, including in low-income, low-education communities. Bitcoin, unlike most other crypto brands, is very well known and has a strong reputation, with BCEs throughout the world working to educate on the same themes and network, it is a lot easier to bypass concerns from local community leaders and educate the public about the most secure and successful crypto currency available. 

Communicate in Bitcoin, not Dollars

Many of the BCEs represented had Bitcoin donors, some of them anonymous, with simple but powerful demands from the recipients. Bitcoin Beach’s founding donor, who still communicates with Peterson, originally demanded that the bitcoin be used to buy things, not sold for dollars and then used. Bitcoin adoption as a medium of exchange was a prerequisite for the donations and the relationship to continue.

Donors of this kind, who are likely OG Bitcoin maximalists, also insist that leaders talk about value in SATS, not in dollars, challenging a manner of speech that has become normalized in the industry, something like “I’ll send you 20 dollars worth of Bitcoin”.

Peterson insisted that donors hate this and want Bitcoin to be discussed in SATS (Satoshis, the smallest denomination of bitcoin) or in BTC terms, a condition clearly aimed at making bitcoin a common unit of account. 

Sustainability

Sustainability was also an important topic across the Summit. In the context of Bitcoin circular economies, it means being able to survive and continue to grow as a local bitcoin hub, when donations dry out. The question of how to achieve sustainability touches a variety of important topics, including what might eventually become an economic theory of microeconomies powered by Bitcoin. 

The Bitcoin Beach team highlighted the importance of tourism as a source of external capital into the local economy, but recognized that not all BCEs are conducive to tourism. Some are in very remote areas, others are in hostile and dangerous political environments. Attendees generally recognized that some BCEs might always depend on donations, depending on the situation, but also discussed ways in which some BCEs can form economic relationships with each other. 

Motiv in Peru, for example, serves two communities in particular who have developed an economic relationship, one produces artisan crafts, sewn by Indigenous women from a small town in the mountains of Peru, and the other is a tourist hub in Lima that buys the goods from them in bitcoin and resells them to Bitcoin tourists. Peterson highlighted the importance of understanding what makes your community special and working with locals to develop their local talent. 

Another aspect of sustainability is the focus of agency instead of assistance, in the non-profit version of BCEs. Rather than just buy things and gift them to impoverished communities, education and economic empowerment are encouraged, highlighting the “teach a man to fish” as superior and more likely to survive.

Bitcoin economic theory would suggest that teaching long lasting life-skills to developing communities is preferable to just giving them free stuff forever, since the faucet of bitcoin donations is fundamentally finite. While in the fiat model, more dollars will always be created — and the quicker they get spent, the better — eventually finding their way through the web of NGOs, to the hands of charity recipients. The never-ending printing machine creates a permanent underclass of economic dependence through foreign aid, defeating the sense of urgency that motivates the pursuit of sustainability.

Finally, sustainability at a personal level for BCE leaders was also discussed, as burnout, divorce, and self-sacrifice for a social cause is a familiar story. Martinez and Peterson spoke from personal experience, highlighting the importance of staying healthy as a Bitcoin leader in these communities, and not biting more than you can chew, so to speak, else you might “become a single point of failure”. Instead, they suggested leaders educate and train others to continue this important work. 

Fund Raising

When it comes to fundraising, a variety of organizations are actively contributing to the non-profit side of Bitcoin, some of them for-profit entities with non-profit arms, others fueled by Bitcoin donors of all sizes, from around the world. 

Paystand

Paystand, an American B2B payments company that uses Bitcoin in a variety of ways to provide its business solution to major corporations, also has a non-profit arm under the same brand, actively supporting BCEs across the world. They offer grants from 10k to 50k USD, depending on the project, can donate almost anywhere, even through the Human Rights Foundation, and are happy to offer mentorship to aspiring applicants. Applications to the Paystand non-profit can be made at their dot org site. 

Something that Paystand representatives insisted on communicating is that the organization does not expect any kind of advertising in return; their business operations do not depend on it at all, instead considering their work to support BCEs as part of their mission as Bitcoiners. 

Fedi

The Fedi for-profit technology company also provides grants to BCEs throughout the world, though largely focused on Africa until recently, they are now actively expanding into Latin America and have established deep roots in Indonesia. They also offer grants on a case-by-case basis, asking applicants what specific problem they are looking to solve, and providing support, but opting to empower leaders, rather than get deeply involved in specific communities.  

The Fedi app has now reached an impressive level of maturity, supporting collusion-resistant multi-signature mints, ecash denominated not just in Bitcoin but also local fiat for shorter-term payment requirements, social network-like capabilities for local communities to communicate and organize, payment rails to internet service providers in various countries, and much more. 

The Federation of Bitcoin Circular Economies

The FBCE, a growing association of Bitcoin circular economies, co-founded by Bitcoin Beach, El Zonte, Bitcoin Ekasi, South Africa, and Toronto’s Scott Wolfe, also offers grants, having completed two massive rounds since 2024.  The FBCE gives grants to initiatives that demonstrate enough proof of work, usually starting with small donations and growing from there, for a time, depending on the project.

Other Fundraising Platforms

Other fund raising platforms were mentioned by multiple attendees, as reliable ways to raise funds for BCE initiatives, among them were Angor.io and Geyser.fund which enable users to raise funds over time from many donors, kind of like a go-fund-me for Bitcoin. Bittasker.com also had a strong presence at the event as a sponsor, with a new platform for funding tasks and employing locals to get work done in BCEs, further advancing the medium exchange cause of Bitcoin. Donors could fund specific tasks, repairs, or infrastructure upgrades, like construction work via Bittasker in collaboration with BCE leaders on the ground. 

The Technology Stack

As digital money, Bitcoin requires a certain amount of infrastructure while also empowering BCEs with significant technological capabilities. To unlock Bitcoin circular economies, a variety of tools have been custom-built for this kind of adoption by various organizations and were regularly mentioned and used by the attendees.

Blink

Blink wallet, which rose to fame with El Zonte’s Bitcoin Beach, emerged as the most popular wallet among BCEs at the summit. Its Lightning native integration, on-chain capabilities, easy-to-use mobile app design, and stable SATS features appear to deliver the best experience so far for these kind of low-tech environments. 

Fedi Wallet

Fedi also had a very strong presence, supporting a large set of BCEs in Africa and Indonesia, with its broad set of tools, including local fiat-denominated ecash, lightning to ecash integration, and social network-like experiences, which are designed specifically to serve and empower Bitcoin circular economies of all kinds. 

Bittasker

Bittasker, a sponsor of the event, showed off its beautiful interface, boasted about its integration with Nostr as well as smart contract capabilities via Rootstock, which provides a trustless, smart escrow system for funding micro tasks in Bitcoin. Bittasker includes a job board and uses the Boltz back end for trust-less bridging between the various Bitcoin layers. 

K1 BTMs

K1, a Bitcoin ATM company, also sponsored the event and showed off their coins for sats BTM, which has become a staple of Bitcoin hubs, turning coins into SATS. The machines are lightning native, and have various upgrades and versions with more advanced capabilities, showing up at schools, retirement homes, and BCEs across the globe. 

Tiankii

Tiankii, another sponsor of the summit, showed off its bolt cards, which serve as bitcoin debit cards of sorts, for payments on terminals like the Bitcoinize machine. These cards are particularly useful in areas with low internet, where users might not have a mobile phone handy, nor data, accessing the Bitcoin network through the merchant’s terminal, delivering the ultimate payment experience in today’s digital world, offline tap to pay. 

Bitbooks

Anyone raising funds and trying to run a tight ship needs clear accounting, and one of the sponsors, BitBooks.com, focuses on just that. Their Bitcoin native accounting platform offers instant reconciliation across payments, dual currency view, automatic exchange rate calculations, and even a new experimental algorithm that can help users decide whether to pay in fiat or in bitcoin depending on price volatility and the user’s specific needs. 

AmityAge  

AmityAge is a Bitcoin financial services company with a strong educational offering. Dusan Matuska, its co-founder and CEO, delivered a memorable, interactive workshop on how to get past common objections in Bitcoin adoption, how to better understand and listen to the challenges faced by new users, and how to think about the process of evangelizing Bitcoin. Their platform hosts a variety of educational tools, financial and educational, available to the Bitcoin curious. 

Concluding Thoughts

Having attended Bitcoin conferences and events for over a decade, I was left both breathless and deeply satisfied with what I saw at the Bitcoin Circular Economy Summit. Unlike large industry conferences, which focus on how to gain traction in traditional markets, serve major corporations, and, in general, solve the problems of fiat at the top of the global markets, this summit looked in the opposite direction.

The BCEs represented, the individuals I met, and the stories I heard reminded me that Bitcoin is not a tool for its own sake, it is not a high-tech, science fiction endeavour, nor is it fundamentally about number-go-up. Bitcoin is a means to an end, and BCEs have that end goal, that objective very clear in their minds, to reach those whom society at large has failed, to onboard onto global finance those who live beyond Banks’ profit margin, to deliver sound money to good people in hostile environments, because they also deserve hope and are hungry for growth.

Bitcoin is a means to an end, not an end in itself. 

This post El Salvador’s Bitcoin Beach Hosts Global Summit: Strategies for Sustainable Bitcoin Circular Economies Emerge first appeared on Bitcoin Magazine and is written by Juan Galt.

Simple Proof, the bitcoin-based document timestamping company, recently announced official partnerships with El Salvador’s Ministry of Foreign Affairs and Ministry of Environment to protect

government records using the Bitcoin blockchain technology. The announcement was made during the Bitcoin Histórico conference at the National Theatre in San Salvador, where CEO Carlos Toriello presented alongside OpenTimestamps creator and Bitcoin Core Contributor Peter Todd.

The collaboration marks El Salvador’s continued leadership in applying Bitcoin technology beyond financial applications. Both ministries have begun registering official documents on the Bitcoin blockchain, with verified records now publicly accessible through dedicated government portals.

“Bitcoin is not just digital money — it’s also a clock that no one controls. This allows us to certify with precision the exact moment a document was created, guaranteeing its authenticity and protecting the country’s history forever… We’re helping ensure that the country’s history is preserved intact and can be verified directly on Bitcoin, without intermediaries,” said Carlos Toriello, CEO of Simple Proof, in a press release shared with Bitcoin Magazine.

The company has had multiple successful pilot programs in the past, including one in Screven County, Georgia, in the United States and another in Guatemala, where it had a direct influence on the 2023 elections. 

This deployment builds on Simple Proof’s previous work in El Salvador, where CUBO+ program graduation certificates became the first public documents in the country registered via the Bitcoin blockchain. 

The Ministry of Environment’s timestamped documents, including national reports and public files, are available at blockchain.ambiente.gob.sv. The Ministry of Foreign Affairs offers verification of institutional reports and records at rree.gob.sv/logros-y-memorias. 

Peter Todd, creator of OpenTimestamps, the platform and protocol used in part to time-stamp critical data on the Bitcoin blockchain, said in the press release that, “With a single transaction, we can protect millions of documents without congesting the network or altering its monetary function,” noting that the system stores only cryptographic hashes rather than actual documents on Bitcoin.

The project positions El Salvador as a global reference for using blockchain technology in government

information management, strengthening the transparency and public trust of democratic institutions and processes, by eliminating the possibility of document tampering.

This post El Salvador Partners with Simple Proof to Timestamp Government Documents on Bitcoin Blockchain first appeared on Bitcoin Magazine and is written by Juan Galt.

I spent the past week in El Salvador for the third time in one year, and it’s clear the country is undergoing a real transformation. Not theoretical, not surface-level — a shift in how people live, think, build, and imagine their future. And the moment that crystallized this transformation came at the end of the week, during a private dinner with President Nayib Bukele, which I was privileged to take part in.

I’ve followed his work for a few years. I’ve interviewed nine Salvadorans and expats living in the country on my podcast — as well as merchants, builders, grassroots organizers, and everyday citizens. A year ago, I tweeted that my dream was to meet him one day.

I didn’t expect that when I approached him at the end of the dinner to take a photo and said, “Hi, I’m Efrat,” he would answer immediately, before I could explain who I am:
“I know you, I’ve seen your podcast.”

It was one of those moments you don’t forget, because it made the entire week feel connected to something larger unfolding in this country.

The Three Layers of a Nation in Motion

Three events took place during the week — Reclaiming Health, Adopting Bitcoin, and Bitcoin Histórico — each revealing a different layer of El Salvador’s trajectory.

“Reclaiming Health Symposium” led by Salvadoran Dr. Kenneth Fernández-Taylor, explored the intersection of sound health and sound money. Some of the conversations centered on how unsound money and high-time preference shape stress, uncertainty, and long-term health. In a country that has reclaimed public safety and is now reclaiming economic freedom, the connection between health and money didn’t feel abstract, it was intuitive. Four years ago, when the world was gradually going insane during an “end of the world pandemic”,  a health symposium with truth-seeking, freedom-loving doctors, healers, and experts felt like a distant dream. But in El Salvador, dreams are coming true. 

At “Adopting Bitcoin”, I saw the grassroots engine of this transformation. Circular economies like Bitcoin Beach (El Zonte) Berlin in El Salvador, and MurphLife, are real-life demonstrations of what happens when people earn, spend and save in sats. Communities like “Bitcoin Babies”, “Les Femmes Orange” or the Argentinian “La Crypta” emphesize that bitcoin is for everyone. Merchants accept Bitcoin naturally. Kids are growing up around it. “My First Bitcoin” announced its next chapter: supporting 70+ projects across 40 countries with materials, frameworks, and guidance for community-led Bitcoin education. The startup floor was filled with founders who have opened offices here and are building from El Salvador. The common theme I kept hearing was simple: you can do things here.

Historic Moment For Bitcoin & El Salvador

But the highlight of the week, the moment that framed everything else, was “Bitcoin Histórico”. It was the first government-led Bitcoin conference in the world, organized by the government’s Bitcoin Office, a world-first led by Stacy Herbert and team, and held inside the National Palace and the National Theater. These are two very symbolic landmarks, and the decision to host a Bitcoin conference in such royal setting said more than any speech could. The halls were filled with ministers, entreperneurs, and international speakers; voices from the U.S., Europe, Latin America, and Africa. Guests received booklets titled “El Salvador is Bitcoin Country” with Bukele’s photo on the cover, and it is clear that Bitcoin is not a side project here, it is a national direction. 

Outside, in Plaza Gerardo Barrios, the conference spilled into public space; the sessions were screened with Spanish translation to the locals: families, students, elders. Shops and stalls accepted sats. Bitcoin was in its natural habitat, part of everyday life in the city, and the public was part of the conference.

Several announcements underscored the country’s trajectory: The Ministry of Agriculture signed a cooperation agreement with The Beef Initiative to strengthen local cattle production. Steak ’n Shake announced its targeting El Salvador as first Latin American location, accepting  Bitcoin from day one. 

The government unveiled the purchase of Nvidia B300 chips, compute powerful enough to train and run advanced AI models locally, with the support of Hydra Host. It’s a step toward sovereign compute infrastructure that reduces reliance on Big Tech data centers and positions El Salvador to build its own AI capabilities inside the country. Mempool announced it is incorporating in El Salvador, following a recent $17m investment. And with support from Lina Seiche and the Bitcoin Office, 500 classrooms will be renovated for Bitcoin and financial education as part of the country’s wider “Two Schools a Day” initiative to modernize and expand educational infrastructure at scale. Together, these moves form a consistent pattern: a country building its future across multiple layers at once.

Ricardo Salinas’ presence at Histórico added weight to the moment. In his remarks, he said “El Salvador is on the right side of history,” and pointed to the dramatic improvement in public safety: “You have better security than in Japan. I wish my country could be like this.” Coming from one of Latin America’s most influential entrepreneurs, his words echoed what many visitors felt this week.

The Presidential Dinner

But the clearest window into that future came at the dinner.

Bukele is nothing like his international caricature. He’s sharp, fast, funny, and completely fluent in the culture of Bitcoin. As he sat down to the dinner table, he joked, “Guys, it’s over, Bitcoin’s done,” because the price had dipped under $100k that day. He’s not a politician trying to sound relatable or quote scripted talking points; he actually understands the room and gets bitcoin.

When the conversation turned to Bitcoin’s long-term trajectory, he said something that stayed with me: “Bitcoin should be a currency.”

Not an investment, not an asset class, a currency. He sees the end state clearly. And he sees the steps that lead there. He talked about circular economies – El Zonte, Berlin – as a practical mechanism for adoption. Communities that use Bitcoin daily are the ones that will carry it from an idea into a functioning monetary system.

His wit revealed just as much as his analysis. Giacomo Zucco, Director of Plan B Network, was introduced as an anarcho-capitalist, and Bukele immediately replied, “It’s fine, I’m also friends with Milei,” then called him “the anarchist” throughout dinner. After Wiz gifted him a katana (a Japanese sword) and Giacomo gifted him a bottle of rum named “Dictador” (a light jab at the media narrative) someone noted that Bukele doesn’t drink. He answered instantly: “It’s fine, I don’t often fight with swords either.”

As the evening ended, Giacomo thanked him, and Bukele smiled and said something that summed up his entire approach to governance: “I’m sorry if I run a government. But it’s a very small one.”

Happy People Whistle

I’ve spent time in many countries that are drifting toward a darker trajectory; more surveillance, more centralization, more control, more violence. What’s happening in El Salvador feels like the opposite: safety without oppression, structure without suffocation, freedom with responsibility. After decades of oppression by violent gangs, Salvadorans feel liberated. You can see it in their faces, they’re kind, relaxed and grateful. On a previous trip, I saw a 75-year-old man cycling through El Zonte at sunrise, whistling. “When do people whistle?” I asked myself. “Happy people whistle. People whistle when they feel safe”. That simple moment became my quiet metaphor for this place. 

Yes, the country still interfaces with global institutions such as the IMF. The recent repeal of bitcoin as a legal tender was unfortunate, but after peeking under the hood, it feels like one step back, four steps forward. Indeed progress is uneven. But the direction is unmistakable: a push toward monetary sovereignty, digital sovereignty, educational sovereignty, and civic sovereignty, all moving in the same direction.

This week gifted me with a glimpse into a nation rebuilding itself.

While most other nations struggle with their economy, security, frail social fabric under the influence of global agendas, El Salvador is transforming its reality, moving into a new timeline.
And meeting Bukele didn’t feel like meeting a president.

It felt like meeting the architect of a country determined to liberate itself and lead the way.

This is a guest post by Efrat Fenigson. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine. 

This post El Salvador: The Making of a Sovereign Nation first appeared on Bitcoin Magazine and is written by Efrat Fenigson.

Some sell Bitcoin on the dips while others aggressively buy more — and so far, it’s the accumulators who’ve come out ahead, though only time will decide which strategy ultimately wins.

El Salvador is pressing ahead with its aggressive Bitcoin accumulation strategy despite one of the steepest market drawdowns of the year. The Central American nation purchased 1,091 BTC on Tuesday — nearly $100 million worth — according to data from the country’s Bitcoin Office. 

President Nayib Bukele later posted a screenshot on X confirming that the government accumulated 1,098.19 BTC over the past seven days, pushing total holdings to 7,474.37 BTC valued at roughly $688 million.

The country continues to buy 1 BTC per day, a policy Bukele introduced in November 2022 and has maintained through every market cycle. The strategy has become a signature part of El Salvador’s approach to digital asset reserves, even as the IMF and other global institutions discourage further public-sector accumulation. 

Government disclosures show that the one-BTC-per-day program has steadily expanded reserves, and officials insist there are no plans to halt the buys.

Stacy Herbert, director of El Salvador’s Bitcoin Office, called Bitcoin “freedom, transparency, and individual empowerment,” saying the policy reflects a desire to distribute economic power rather than centralize it. Financial analysts note that El Salvador is now one of the few sovereign actors openly buying into market weakness.

The latest purchase also arrives as the Bukele administration deepens coordination with U.S. officials on digital-asset oversight. The president met with White House crypto adviser Bo Hines in June, part of ongoing discussions around regulations affecting cross-border Bitcoin activity.

El Salvador’s conviction comes during a brutal week for the broader market. Bitcoin plunged below $90,000 in Asian trading on Tuesday, dropping as much as 4.9% over 24 hours. At the time of writing, BTC trades near $91,768 currently, according to Bitcoin Magazine data. 

Short-term holders—wallets that have held coins for under 90 days—panic-sold roughly 148,000 BTC at a loss, the largest capitulation since April. Analysts say this selling mirrors behavior seen at previous market tops and may not be finished.

The sell-off accelerated after $19 billion in leveraged long positions were wiped out, triggering cascading liquidations. Bitcoin is now down more than 26% from its October all-time high near $126,000. 

If Bitcoin stabilizes in the $80,000–$90,000 zone, many believe El Salvador’s nine-figure buy could ultimately prove one of the sharpest macro calls of the year.

El Salvador’s Bitcoin background

El Salvador’s Bitcoin experiment has entered its fourth year, marking one of the most closely watched financial policy shifts in the world. 

The country made history in September 2021 when it became the first nation to adopt Bitcoin as legal tender, a move championed by President Bukele as a strategy to boost financial inclusion, attract investment, and modernize the economy. 

The rollout, supported by a state-run wallet called Chivo and various incentives, drew global attention as well as criticism from the IMF and traditional financial institutions concerned about volatility and fiscal risk.

As mentioned earlier, despite early technical challenges and a sharp market downturn in 2022, Bukele’s administration doubled down on its Bitcoin strategy, implementing daily BTC purchases, launching a “Bitcoin Office,” and pushing forward plans for Bitcoin-backed bonds and the proposed “Bitcoin City.” 

The government also committed to transparent reporting of its treasury address, allowing the public to track the nation’s on-chain holdings.

While the global debate over the policy remains unresolved, El Salvador’s Bitcoin-first approach has undeniably reshaped the nation’s economic narrative.

Bukele views El Salvador’s adoption of Bitcoin as a strategic move to boost the country’s global image, attract tourism, and spur investment, despite low domestic usage. He emphasizes that the goal was less about immediate adoption and more about repositioning El Salvador as a forward-looking, digitally innovative nation.

This post El Salvador Drops $100 Million on Bitcoin as Market Crashes first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

In the wake of Mi Primer Bitcoin’s three-year anniversary, the El Salvador-based organization announced that it has promoted two of its staff members — Reyna Chicas and Quentin Ehrenmann — to leadership positions.

Chicas, a native Salvadoran who has been with the organization for approximately two years, has quickly ascended through its ranks from teacher to Lead Teacher to a member of the Board of Directors to now the Director of Education. She has shined since the beginning of her time with Mi Primer Bitcoin (MPB), when the organization sent her to Bitcoin Lake in Guatemala for six months to teach in the community. During this past year, she’s been a point person for Mi Primer Bitcoin for its communications with El Salvador’s Ministry of Education.

“As a Salvadoran who began this journey as a teacher, I’ve experienced firsthand the power of education to inspire growth and change,” said Chicas in MPB’s announcement.

“With this new opportunity as Director of Education, my commitment is stronger than ever to help create more stories of empowerment with MPB, to be a good example for my people, both in my country and beyond, and to show that with passion, effort, and dedication, we can build a better future,” she added.

Ehrenmann has also been a rising star since joining MPB in 2023 and was recently promoted to General Manager of the organization. For his first project for MPB, he moved to an underdeveloped island off the eastern coast of El Salvador and kickstarted an education-focused circular economy. After that, he moved to the mountains of Berlin, El Salvador to educate within the community there. He was then promoted to Director of Operations, where he helped further MPB’s Node Network of Independent Educators, which now includes teachers in 27 countries.

“From working on a special project on an island off El Salvador to joining the leadership team and contributing to the execution of our mission, my journey at Mi Primer Bitcoin has been incredibly rewarding,” said Quentin in MPB’s announcement. “I look forward to helping bring independent Bitcoin education to the next 100,000 students.”

For more on Mi Primer Bitcoin, read our Founders profile on the organization’s founder, John Dennehy.

This post Mi Primer Bitcoin Promotes Two Staff Members to Leadership Roles first appeared on Bitcoin Magazine and is written by Frank Corva.

Company Name: Mi Primer Bitcoin

Founder: John Dennehy

Date Founded: August 2021

Location of Headquarters: El Salvador

Amount of Bitcoin Held in Treasury: Approximately 0.5 BTC

Number of Employees: 21

Website: https://miprimerbitcoin.io/

Public or Private? Private (Non-profit)

John Dennehy wants to change the world — and he believes that Bitcoin education is a means to do so.

Dennehy sees Bitcoin as a tool to help individuals reclaim agency in their lives, and he understands that education is integral to helping people use this tool.

So, in late-2021, he created a Bitcoin education platform called Mi Primer Bitcoin (My First Bitcoin) as a means to empower everyday Salvadorans.

He believes that for the Bitcoin revolution to truly succeed, Bitcoin users must thoroughly understand the technology with which they’re engaging.

“Education naturally will push back against any attempts to co-opt the revolutionary spirit of Bitcoin,” Dennehy told Bitcoin Magazine.

And while Dennehy doesn’t hesitate to think of greater Bitcoin adoption as anything less than a revolution, keep in mind that his approach is more like Gandhi’s and less like Guevara’s.

Dennehy is a soft-spoken, introspective and kind-hearted person who’s notably thoughtful in his approach.

The Inspiration For Mi Primer Bitcoin

In early 2021, like many of us during the COVID lockdowns, Dennehy was concerned with how powerless people felt and wanted to do something about it.

“I was in New York during the pandemic, and I spent a lot of time on long walks contemplating the state of the world and the direction that society was heading in,” said Dennehy.

“My conclusion was that the root of the problem was that we had collectively lost agency, we had lost sovereignty — the individual had lost agency in their own life — and that had a lot of negative second and third order effects,” he added.

“The solution was Bitcoin education. The solution was to bring more people into Bitcoin and do it in a way that empowers and encourages people to think for themselves, to think critically, and to take control of their own life and their own future.”

Riding the wave of inspiration, Dennehy booked a flight to Ecuador, a country in which he’d previously lived and a place that “wasn’t well served by the current system,” as he put it, to begin his Bitcoin education mission.

A First Attempt

Dennehy arrived in Ecuador in June 2021. There, he tried to educate friends about Bitcoin, but struggled to get people to meet in person because of the pandemic. Without in-person meetings, he found it difficult to connect with people.

“Wrong place, wrong time,” said Dennehy of his experience in Ecuador.

While in Ecuador, though, Dennehy got word of President of El Salvador Nayib Bukele’s announcement that bitcoin was to become legal tender in El Salvador.

After snapping out of his near disbelief, Dennehy booked his next flight, a one-way ticket to El Salvador, to help the country make history.

“I decided to sell my possessions, get a one-way ticket to El Salvador to try to see how I could help make it successful,” Dennehy recounted. “As the first nation in the world to adopt Bitcoin as legal tender, for better or worse, El Salvador was going to be an example for the world, and I thought it was of the utmost importance that it was a good example.”

Humble Beginnings

Dennehy landed in El Salvador and quickly drafted Mi Primer Bitcoin’s mission statement as well as some lesson plans. He also began to recruit both students and teachers.

“The tactic was to talk to every Salvadoran I met — the Uber driver, the waitress at the restaurant, the person standing next to me waiting to cross the street — about Bitcoin,” said Dennehy.

“Before the first class, there were a couple of meetings of this very random group of people. They came to my Airbnb and talked about [Bitcoin] as a group,” he recounted.

“Of that group, a couple of people would volunteer with the project.”

Despite his years of experience as an ESL teacher and bicycle riding instructor, Dennehy knew from the onset that he wasn’t the right person to teach in the program he aimed to create. Instead, he wanted locals to play that role.

“From the start, one of the founding concepts was that it should be community led, which means that the teachers should be able to relate to their students in a way that I just never would be able to,” Dennehy explained. “So, as a hard and fast rule, all the teachers here in El Salvador are Salvadoran.”

The first class was taught in a yoga studio between classes and had a whopping total of one student attend. But by the end of the first month, a total of five had attended classes, which were held in that same yoga studio or in cafés or restaurants.

Developing Mi Primer Bitcoin’s “Bitcoin Diploma” Program

By February 2022, Dennehy and the growing team at Mi Primer Bitcoin started to build a proper curriculum, which it would term its “Bitcoin Diploma” program.

“We went through the 2022 calendar year with three versions of [the program],” said Dennehy.

“We were just iterating very quickly. We didn’t start to build it until February, and the third version was complete in September,” he added.

Dennehy also shared that feedback from students on what was and wasn’t working greatly informed the process.

In speaking with Dennehy, I got the impression that building a curriculum was hardly one of the biggest challenges the organization has faced.

The Challenges Of Running Mi Primer Bitcoin

A persistent challenge Mi Primer Bitcoin has faced since its early days has been establishing the non-profit’s independence and impartiality.

Dennehy discussed how many Salvadorans associate Bitcoin with the Salvadoran government, an institution about which many in the country have polarized feelings.

“Early on, there was a strong association here in El Salvador with the government and Bitcoin,” said Dennehy.

“People that liked the government tended to like Bitcoin. People that didn’t like the government tended to not like Bitcoin. There were even people that thought that Nayib Bukele invented Bitcoin. That was a common perception in these early days,” he added.

“So, there is a strong association that Bitcoin had with the government. An early struggle was to show people that Bitcoin is separate. Bitcoin is independent. And so are we.”

Dennehy pointed out that this challenge still remains, especially as Mi Primer Bitcoin now works within the public school system in El Salvador.

“We’re always trying to assert our independence and not just in deed, but in perception,” he explained.

“Working with the government just amplifies that challenge of separating ourselves in the perception of others from the government,” he added
.

“One of the ways that we meet that first challenge of not being dependent on the government is, as a point of principle. We never accept funding from the government.”

Another challenge Mi Primer Bitcoin faces is keeping its 21 employees paid via a donation-based system, a challenge that’s amplified by the fact that the organization doesn’t accept donations that come with strings attached.

“We turn down most offers for sponsorships,” said Dennehy. “Four out of five offers for sponsorships we turn down, because four out of five come with strings attached.”

However, notable institutions in the Bitcoin space have begun to alleviate some of Mi Primer Bitcoin’s financial burden.

“We get grants from HRF, OpenSats and Block,” said Dennehy.

“All of those come without strings attached, which is great,” he added.

“I think grants might start to take up a bigger slice of the pie, but from the start until now, the majority of our funding has come from grassroots support.”

Mi Primer Bitcoin Goes Global

Mi Primer Bitcoin’s education materials and curriculum are free to download and use. This has made it easy for teachers around the world to adopt the non-profit’s curriculum.

And Mi Primer Bitcoin also supports its international teachers that head Bitcoin educational efforts in their respective home countries, members of Mi Primer Bitcoin that the organization refers to as “Light Nodes.”

“We have 33 nodes in 22 countries, and we all get together and share best practices,” explained Dennehy.

“Maybe a teacher in Argentina will guest teach for a project that started in Columbia. We have a node in Cuba and a node in the Dominican Republic, and they’re actually co-teaching,” he added.

When I asked Dennehy how quickly Mi Primer Bitcoin’s model is spreading on a scale of one to 10, he responded with a “10,” with little hesitation. He also pointed out that trying to expand Mi Primer Bitcoin more quickly would only cause the institution to stray from its mission.

“I think the only way that this spreads faster is if we compromise our values, if we centralize and dictate rather than decentralize and empower,” Dennehy stated.

“We are trying to reimagine what’s possible for the next generation and that often means we have to forge a new path. If we are trying to teach others that a different future is possible, we must demonstrate that ourselves,” he added.

“What you say isn’t important, what you do is everything.”

Dennehy went on to explain that Mi Primer Bitcoin has received 4 Light Node applications in the past 48 hours and that he’s amazed by how quickly things are accelerating.

Never in his wildest dreams did he see Mi Primer Bitcoin growing so quickly.

“I’m a dreamer. I’m an idealist. That’s why I’m here,” said Dennehy. “But if you told me two and a half years ago we would have taught tens of thousands of students in person, and we would have inspired and helped facilitate this in dozens of other countries, I’d be like, ‘No way. Maybe in like 10 years.’”

Remaining Mission-Driven

As Mi Primer Bitcoin progresses, Dennehy believes that the organization must continue to emulate Bitcoin itself if it’s to remain true to its mission of empowering others.

“Everything that we do at Mi Primer Bitcoin, we try to learn from Bitcoin itself,” Dennehy shared. “And decentralization is really important to us, because we want to empower others rather than control them.”

And his view on what this empowerment looks like seems to be more refined than ever.

“Bitcoin education is a means to an end, and that end is empowerment,” said Dennehy.

“Once you realize that you have control over your money, that you could have more control over your present, it flips the incentive structure. In the fiat world, we’re disincentivized to look into the future, to build, to create, because the rules of the game might change. I could start a business today, but the rules of the game that will greatly influence whether it’s successful or not are not up to me and could change at any moment. So, it encourages us to be followers rather than leaders,” he explained.

“Bitcoin is something that flips a switch that ‘Okay, I could have more control of my money, which gives me more control of my present which makes it easier to build out into the future, because I’m not relying on the whims of someone else.’ The more we can insert ourselves into defining our own destiny, the more we are encouraged and incentivized to look into the future — to build and create. That’s the end, and Bitcoin education is the means to that end.”

This post Bitcoin Education Can Change The World first appeared on Bitcoin Magazine and is written by Frank Corva.

The International Monetary Fund (IMF) is reportedly demanding changes to El Salvador’s pro-Bitcoin law, hindering the country’s attempts to secure a $1.4 billion credit line as reported by Infobae. 

NEW: IMF reportedly demands changes to El Salvador's #Bitcoin law for a $1.4 billion aid.

They're scared pic.twitter.com/vmqhts5dCY

— Bitcoin Magazine (@BitcoinMagazine) April 12, 2024

El Salvador made history in 2021 by adopting Bitcoin as a legal tender under President Nayib Bukele. The country has since bet big on Bitcoin, building Bitcoin reserves, mining BTC, and launching educational initiatives.

However, the IMF has objected to the Bitcoin law amid loan negotiations with El Salvador, which needs financing to pay debts and obligations. Talks have stalled for nearly two years over the IMF’s calls to limit Bitcoin’s scope in the country.

According to the IMF’s communications director Julie Kozack on last Thursday, the “risks” of Bitcoin remain a key issue in discussions with El Salvador. The IMF has previously cited financial integrity and stability concerns about Bitcoin.

The fund’s opposition highlights a clash over the future of money and payments. While Bukele sees Bitcoin as an innovative solution for financial inclusion, the IMF remains wary of its volatility and decentralized nature, and a threat to their dominance.

Irrespective of pressures, El Salvador has stood firm on its Bitcoin commitment. The country has invested over $150 million in BTC reserves, continually buying more. Bukele also pledged to purchase 1 BTC daily.

The IMF loan impasse puts El Salvador in a difficult fiscal position. By tying loan access to changes in El Salvador’s Bitcoin law, the IMF is exerting its influence over poorer nations. But Bukele seems unwilling to back down on Bitcoin, creating an ideological tug-of-war.

El Salvador’s pioneering Bitcoin adoption signaled a shift toward decentralization and self-determination. Demands to roll back the Bitcoin law undermine the country’s monetary sovereignty.

The standoff illustrates the disruptive potential of Bitcoin to reshape global finance. While risky for El Salvador in the near-term, Bukele’s Bitcoin bet could pay long-run dividends.

This post The IMF Is Still Demanding Changes to El Salvador’s Bitcoin law: Report first appeared on Bitcoin Magazine and is written by Vivek Sen.

On March 14, 2024, El Salvador’s president-elect, Nayib Bukele, unveiled a historic bold maneuver that echoed across the Bitcoin world: El Salvador confirmed the transfer of a substantial portion of its Bitcoin holdings into cold storage, securely kept within a vault in its national borders. This strategic decision marks a pivotal juncture in El Salvador’s Bitcoin journey since the introduction of the Bitcoin Law, which has drawn both admiration and skepticism worldwide.

Amidst a cacophony of critiques ranging from allegations of human rights violations to inadequate modern infrastructure, El Salvador has stood committed, weathering storms of disapproval from traditional finance stalwarts and even fervent Bitcoin maximalists on Twitter (X) Spaces. The veil of ambiguity surrounding the size of El Salvador’s Bitcoin reserves, a point of contention and criticism for many, has now been decisively lifted, ushering in a new era of transparency and confidence in the nation’s commitment to fostering a thriving Bitcoin-friendly ecosystem.

With this groundbreaking move, Salvadorans and Bitcoin enthusiasts worldwide have the ability to audit El Salvador’s Bitcoin reserves and can see all inbound and outbound transactions. This audacious step wasn’t mandated but was taken willingly, embodying El Salvador’s commitment to its citizens’ trust and the global Bitcoin community’s ethos of openness. Unsurprisingly, shortly after Bukele announced El Salvador’s Bitcoin address, Bitcoiners began to send donations to the wallet, with nearly 6 Million Sats in transactions as of this writing. To date, plebs can track El Salvador’s daily 1 bitcoin DCA purchases. In this historic moment, El Salvador not only charts a new course in financial governance but also silences its critics by setting a precedent of leading by example in responsibly disclosing and managing its modest but modern sovereign Bitcoin wealth reserves.

With 5,689 Bitcoins—valued at $385,111,456 USD as of this writing—El Salvador has secured its digital wealth and aptly navigated the treacherous waters of international politics. The decision to shift its Bitcoin holdings from Bitgo, an American custodian, to a vault within its sovereign borders wasn’t just a public relations masterstroke; it was a strategic imperative. Given the strained relations between the American government and El Salvador over the Bitcoin Law, the mounting holdings under Bitgo’s custody risked becoming entangled in potential sanctions and regulatory quagmires. This decisive action safeguards El Salvador’s financial autonomy and showcases a shrewd understanding of the intricacies of the American regulatory landscape.

While the disclosure of the reserves has garnered widespread approval, there may have been compelling and strategic reasons behind the nation’s initial reluctance to divulge its complete holdings. Nayib Bukele’s affirmation that only a “big chunk” of the total Bitcoin reserves has been transferred to cold storage underscores a nuanced understanding of the country’s strategic financial management. In the complex realm of nation-states navigating the uncharted waters of a Bitcoin Standard, maintaining a degree of opacity can be a prudent strategy. El Salvador, in its quest to carve a distinct path in the world, has tactically kept some cards close to its chest, waiting for the opportune moment to unveil its Bitcoin wealth in a calculated move. This wise approach reflects a careful balancing act between transparency and strategic advantage in the dynamic landscape of geopolitics.

Bukele shed light on El Salvador’s Bitcoin holdings in earlier tweets, surpassing their earlier acquisition strategies and dollar-cost averaging efforts. Contrary to speculations circulating on social media, Bukele revealed a multifaceted approach that had propelled the nation’s Bitcoin reserves. Beyond mere purchases, El Salvador’s innovative visa program, profits from Bitcoin-to-dollar exchanges held in escrow, revenue from government services, and mining endeavors have collectively contributed to a handsome Bitcoin treasury. This revelation further dispels misconceptions propagated by armchair quarterbacks and highlights El Salvador’s innovative courage in leveraging diverse avenues to bolster its growing Bitcoin wealth.

Disclosing El Salvador’s Bitcoin reserves represents a significant stride toward transparency and accountability for its citizens. Yet, it’s crucial to recognize that there will always be a segment of critics who demand more and complain about every detail in an attempt to find fault. However, it’s essential to remember that these measures are not solely aimed at appeasing detractors. Instead, they serve as a foundational step in creating a positive business environment where Bitcoiners can confidently establish their ventures, knowing that the country is dedicated to their success.

The ultimate goal for Bukele and El Salvador extends beyond merely silencing critics; it’s about transforming the nation into a prosperous hub of opportunity for Salvadorans. In a stroke of genius, El Salvador has built its own digital Fort Knox, with the exceptional feature that citizens can verify the existence of the funds. The Salvadoran government aims to nurture a culture of trust and investment in the country’s future by rewarding proof-of-work and low-time preference. This vision encompasses building a new El Salvador where citizens can thrive, seize opportunities at home, and contribute to the nation’s growth, rather than seeking elusive promises abroad. As El Salvador continues its journey toward economic empowerment and progress, these strategic moves serve as foundational pillars for a brighter and more prosperous future.

This is a guest post by Jaime Garcia. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post El Salvador Moves Bitcoin Reserves to Cold Storage Vault first appeared on Bitcoin Magazine and is written by Jaime Garcia.

Having solidified his political legacy by effectively addressing the issue of gang violence in El Salvador, Nayib Bukele has not only secured an extraordinary second presidential mandate but has also propelled his New Idea Party to a resounding victory in the legislative realm. Bukele’s historic triumph in the presidential race saw him clinch an impressive 83% of the vote, a margin widely considered unprecedented, reaching as high as 76% in the context of open and free elections within modern democracies. During his campaign, Bukele had to temporarily step away from the presidency, having obtained a special permit to run as a candidate.

The elections, observed by various international organizations, have been universally acknowledged as free, fair, and open, with no significant irregularities reported. Governments worldwide, including the United States, have recognized the results and congratulated Bukele on his resounding victory.

The Supreme Electoral Tribunal of El Salvador, responsible for overseeing the election, has confirmed that, with over 70% of the votes already counted, Bukele’s victory is assured and renders any competitive outcome by his closest opponent insurmountable. This electoral success extends beyond the presidential sphere, as Bukele’s New Idea Party has also secured at least 54 out of the 60 seats in the Legislative Assembly, further consolidating his political influence.

As Bukele embarks on this new chapter, he faces the hard challenge of steering El Salvador toward economic prosperity, a task intricately tied to the significant agenda of Bitcoin adoption within his government. However, it is crucial to recognize the intricate difficulties he will encounter in navigating the complexities of leadership following such a resounding electoral triumph. With a clear mandate from the people and a dominant position in the legislative landscape, Bukele is poised to enact ambitious policies and reforms, yet the expectations and challenges accompanying such a mandate are equally tough.

Economic Stagnation and Priorities

Despite the resounding electoral victory, President-elect Nayib Bukele has been tasked by his electorate to lift El Salvador from its relative economic stagnation. While Bitcoin adoption may play a role in the solution, it is unlikely to be his top priority at this juncture. The immediate focus is on addressing economic challenges and providing Salvadorans with upward mobility, creating an environment that discourages criminality as a viable option.

It was impossible to tackle economic problems while the looming threat of gang violence and insecurity persisted. Bukele recognized that sustainable economic progress required addressing the root causes of crime and insecurity, laying the foundation for broader prosperity.

However, it is crucial to acknowledge that El Salvador has already progressed. Notably, the country’s favorable digital laws have attracted significant players like Google, signaling a positive environment for digital operations. Companies like Strike, Bitfinex, and Volcano Energy operate within El Salvador’s bitcoin-friendly landscape, contributing to the country’s economic diversification.

Beyond the business landscape, visible improvements are evident in various public works initiatives. Projects like the subterranean electrical cable initiatives, new roads, bypasses, and the construction of a new national library, showcase the government’s commitment to infrastructural development. The surge in tourism, with El Salvador ranking as the 5th best-performing tourist destination globally in 2023, reflects the positive momentum.

However, the challenge lies in ensuring that this prosperity extends to and significantly improves the quality of life for most Salvadorans. While progress is evident, the emphasis must now shift towards ensuring that most Salvadorans have the opportunity to uplift their communities and address socio-economic disparities, ensuring that the benefits of El Salvador’s economic transformation reach every corner of the nation.

Security Concerns and Lasting Solutions

Bukele’s second term will be marked by the need to consolidate and make permanent the strides achieved in addressing security concerns during his first term. His resounding electoral victory can be seen as a public endorsement, a referendum on the effectiveness of his government’s efforts in tackling the pervasive issue of insecurity. The challenge now lies in sustaining these improvements and delving deeper into the root causes of criminality.

Central to Bukele’s approach is not just punitive measures but a comprehensive strategy that includes rehabilitation and addressing the socio-economic factors contributing to crime. His “Zero Idleness” program within the incarceration system is a notable initiative. This program focuses on rehabilitating inmates who have demonstrated trustworthiness and good behavior, preparing them for reintegration into society. However, sustaining this progress requires ongoing support systems and opportunities to ensure these individuals can maintain law-abiding behavior post-incarceration.

While Bukele has acknowledged the link between poverty and crime, the challenge is problematic. His winning speech and previous press conferences highlighted the importance of addressing poverty and recognizing its role in incentivizing criminal activities. However, translating this acknowledgment into tangible changes within a five-year term requires strategic planning and implementation.

One aspect to consider is providing alternatives to the high-time preference for easy money through crime. Bukele’s government may need to focus on creating opportunities for economic growth, job creation, and skill development, particularly in areas heavily affected by poverty and crime. By offering viable alternatives, the government can shift the incentive structure, making it more attractive for individuals to pursue legitimate means of earning a livelihood.

Demonstrating Gains from Bitcoin Adoption

While the successes in addressing security concerns and investing in infrastructure have undoubtedly benefited El Salvador, the challenge now extends to showcasing the tangible gains from Bitcoin adoption. Despite the positive impact on security and public works, El Salvador currently grapples with the lowest-performing GDP in the Central American region. Bukele has candidly acknowledged the economic constraints faced by the country in his winning speech, emphasizing the limited natural resources, dependence on food imports, and vulnerabilities exposed during last year’s transportation blockade from unions and indigenous groups in Guatemala and Panama respectively.

In the face of these challenges, demonstrating macroeconomic gains becomes intricate, requiring a nuanced approach to gauge the success of Bitcoin adoption. El Salvador, a small country with limited resources, must strategically leverage its strengths to create economic opportunities. Bukele’s recognition of the significance of the tech and Bitcoin industry as a cornerstone of the nation’s economic growth aligns with this strategy.

While GDP is not the sole metric for economic success, it remains a key indicator, and addressing its shortcomings is imperative. To alleviate concerns, Bukele’s government must focus on attracting and facilitating strategic partnerships with global corporations, as seen with Nestle and Unilever. After decades of hiatus, Nestle’s renewed commitment to purchasing specialty coffee from El Salvador and Unilever’s expanded operations exemplify the potential for such collaborations to stabilize and boost key industries.

The ambitious Bitcoin City project is a pivotal aspect of El Salvador’s economic transformation. Bitcoiners, who are closely monitoring the country’s efforts, anticipate the development of Bitcoin City and how Bukele navigates potential controversies. Here, challenges may emerge, especially concerning libertarian and Bitcoin maximalist expectations, as the government may need to exert its authority in acquiring land and ensuring private property rights are aligned with the project’s objectives.

As El Salvador positions itself as a hub for the tech and Bitcoin industry, the government’s commitment to balancing progress with respect for individual rights becomes paramount. Success in this venture hinges on attracting foreign investments, fostering a conducive business environment, and managing the expectations of stakeholders and Bitcoiners. El Salvador’s economic fate is undeniably tied to the success of innovative initiatives, and Bukele’s government must tread carefully to ensure the project’s success benefits Salvadorans while navigating the complexities of both domestic and international economic landscapes.

Foreign Investment and Property Ownership

Another tricky area to navigate as part of Bukele’s economic strategy will be balancing the delicate balance between attracting foreign investment and empowering local Salvadorans. Bukele will need to recognize the importance of ensuring that Salvadorans have access to opportunities for property ownership, especially as Bitcoin immigrants seek to make El Salvador their new or second home. Depending on how Bukele addresses this reality, the solutions to ensuring Salvadoran property rights may not entirely align with the principles of the particular perceived Bitcoin ethos. Striking this balance becomes even more complex when considering potential concerns for libertarians and proponents of small government, who will resent government intervention in setting property market rules and regulations.

To truly leverage foreign investment for the benefit of the local population, Bukele’s government acknowledges the need to invest in training programs that equip Salvadorans to capitalize on the potential of new companies in the country. Accelerated education frameworks, particularly in English, become crucial, as proficiency in this language significantly enhances employment and income prospects. Recognizing this, the government must move to implement initiatives that foster English language skills among the local workforce.

However, it’s essential to tread carefully in this endeavor. While the advantages of English proficiency are clear, El Salvador’s official language is Spanish. Bitcoiners and expats eyeing the country for residency and business opportunities must respect and adapt to El Salvador’s linguistic sovereignty. Moreover, Spanish is already an asset to individuals, as Latin America, with its growing popularity in the Bitcoin landscape and Argentina’s Bitcoin-friendly approach, presents a significant growth opportunity.

The integration of expats into Salvadoran society adds an interesting social dimension to the economic strategy. Unlike the experience in Costa Rica, where expats often create separate communities, Bukele must aim to foster a more integrated approach. To address potential challenges, such as local population resentment or gentrification, Bukele may opt for solutions that differ from the expectations of Bitcoin libertarians.

One potential strategy involves the development of social and affordable housing initiatives. By providing dignified homes for local Salvadorans adjacent to Bitcoin expat communities, Bukele must mitigate the impact of rising property prices and access to property for locals. This approach may differ from the expat enclaves seen elsewhere, as the focus remains on shared communities that benefit locals and newcomers.

Ending the State of Exception

The decision to end the state of exception, temporarily suspending certain freedoms, must hinge on permanently addressing security issues. Salvadorans approve of this measure because this tool has prevented a catch-and-release approach with violent criminals and allows the authorities to properly process them. The challenge for Bukele lies in balancing the imperative of national security with the preservation of individual freedoms, which demands careful navigation to avoid compromising the hard-won progress in security.

Addressing the backlog of cases within the judiciary is imperative before the State of Exception can end. The timely investigation, proper charging, fair trials, and appropriate sentencing of perpetrators are essential in any independent justice system. This back-log and the catch-and-release policies were a legacy of the previous administration, which had made the problem of gangs worse, not better for the country. While it is important to ensure that those who are innocent are swiftly acquitted and set free, underscoring the principles of justice and due process, this principle was abused and used as a tool for criminality and the harming of innocent victims rather than ensuring the rights of the wrongly arrested.

Bukele has emphasized the inherent fallibility of any system, including El Salvador’s. His leadership in implementing bold measures to combat crime, albeit controversial, has yielded tangible results, transforming the nation from the “murder capital of the world” to one of the safest countries in the Western Hemisphere. Despite criticism from various quarters, including mainstream media, NGOs, and foreign governments, Bukele remains steadfast in his commitment to safeguarding the safety and security of Salvadorans.

In this context, the importance of maintaining the gains achieved cannot be overstated. Bukele’s government must resist external pressures and adhere to its strategic course, recognizing that freedom and property rights are meaningless without the assurance of safety within the nation’s borders. El Salvador’s journey towards sustained security and prosperity requires resolute leadership and a steadfast commitment to preserving the hard-won gains of recent years.

Managing Expectations

In the pursuit of economic revitalization and Bitcoin adoption, Bukele may not be able to satisfy every ideal on the Bitcoiner’s wishlist. It is essential to recognize that El Salvador’s government is focused on rescuing the nation from centuries of dysfunction rather than adhering strictly to a set of preferred laws and policies.

With such a strong mandate and an essential hegemony in both the executive and legislative branches, Bukele, his government, and his team of Legislative Assembly Deputies will also need to fight off the temptation of corruption, lack of transparency, and complacency. Without effective opposition, being self-critical and humble will be crucial to maintaining good governance and ensuring continued progress.

As El Salvador embarks on this historic journey, President Bukele faces multifaceted challenges. While Bitcoin adoption is a key component, addressing economic issues and security concerns and striking a balance between local empowerment and foreign investment is critical. Bukele’s success will not only be measured by the fulfillment of Bitcoiners’ expectations but also by the tangible improvements in the lives of Salvadorans and the nation’s overall prosperity. The absence of a robust opposition demands heightened vigilance and introspection within the government, reinforcing the importance of ethical leadership, transparency, and a commitment to the well-being of the people.

This is a guest post by Jaime Garcia. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post Nayib Bukele’s Landslide Win In Bitcoin Country Fraught With New And Old Challenges first appeared on Bitcoin Magazine and is written by Jaime Garcia.

The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

On Sunday, February 4, El Salvador’s presidential election will determine whether Nayib Bukele and his revolutionary experiment with Bitcoin will have a continued presence in the nation’s future.

Since Nayib Bukele became President of El Salvador in 2019, he has enjoyed a fairly broad base of support; he was the first man since 1984 to win independently of the nation’s two major political parties. The topic that has taken his administration to a subject of worldwide discussion, however, has been his support of Bitcoin. Bukele made world history in September 2021 when he raised it to the status of legal currency, and El Salvador’s radical experiment with Bitcoin has captivated interest worldwide ever since.

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Naturally, a large deal of this interest has been negative, especially from the financial and media establishment worldwide. The Bitcoin law went into effect mere weeks before bitcoin fell from its all-time highs, and this led to no small amount of speculation that the government would lose huge sums as a result. More pressingly, financial institutions like the IMF also repeatedly urged El Salvador to give up on its project, raising the possibility that the country might lose access to loans. However, as of 2024, not only have the government’s investments into bitcoin stockpiles gone firmly into the black, but major financial institutions have also grudgingly accepted the strength of the Salvadoran economy. The nation’s critics have been disproven from this angle, but there’s one more immediate test on the horizon: the matter of Bukele’s re-election.

In an interview on January 31, Bukele’s running mate Felix Ulloa went to great lengths to stress that a re-election will mean a firm re-commitment to Bitcoin. Although Ulloa revealed that the IMF has quietly been repeating its requests to de-list bitcoin in El Salvador, he was insistent that these pleas are falling on deaf ears. A particular source of strength, he claimed to Reuters, was the takeoff of the ETF in the United States. A major victory like this means for him that Bitcoin “enjoys the greatest credibility in the entire world.” Not only did Ulloa claim that the existing laws in support of Bitcoin “will be maintained”, but he also added that the proposed “Bitcoin City” infrastructure project continues to enjoy the government’s full support.

As far as the polls are concerned, a wide variety of international press agencies all agree that Bukele’s victory is practically guaranteed. The centerpiece of his popularity, it seems, actually has nothing to do with Bitcoin, as large numbers of citizens remain unconvinced. Instead, it seems his sweeping crackdowns on gang activity are the main reason, causing El Salvador’s murder rate to plummet from a shocking 105 murders per 100k residents in 2015 to 7.8 per 100k, the lowest in the region. In other words, his voters love him extensively, but as of yet they remain ambivalent on the Bitcoin initiative. Fickle support like this could indeed be dangerous, as future economic difficulties could turn this indifference into outright rejection. However, as far as all polling suggests, Bukele will have another term to convince his people.

Luckily, there are extensive plans in place to attempt to deepen these connections in multiple spheres of life. The usage of an international currency like bitcoin has attracted the flow of international spending, with tourism to the nation spiking in recent years. In addition to these more casual inflows of cash, the government has also encouraged more permanent immigration by allowing foreign nationals to directly purchase citizenship with bitcoin investment. These attempts to raise foreign dollars can definitely impact the nation’s citizens, but there are also efforts underway to directly create jobs in this burgeoning industry.

Since October, El Salvador has partnered with several firms to create mining infrastructure powered by geothermal energy. Bitcoin mining is a growing market worldwide, and the use of green energy easily sidesteps the most common refrain against it. These goals of creating domestic jobs and attracting foreign investment both fall under the umbrella of the aforementioned “Bitcoin City” project, a plan with the long-term goal of fostering all the multifarious jobs in software development and blockchain engineering associated with the digital asset space.

If El Salvador’s voters do decide to re-elect Bukele on February 4, he’ll have his work cut out for him to ensure that Bitcoin is an enduring presence. As of yet, many of his citizens are either earning extra revenue from international travelers interested in Bitcoin, or involved in building the new pools to mine it. Although the economy is growing, this has not been sufficient to win his people over to the full possibilities of a radical new economic future. Nevertheless, he has won their love anyway, as his government has continually enjoyed fierce public support. In other words, re-election is very likely, and the experiment will continue for the five years of his second term. The major challenge of these five years, however, will be to ensure that Bitcoin will become a fact of life for his people. Still, as daunting of a task as this may seem, he has already been working on normalizing Bitcoin in a wide variety of ways.

Just as one example of this, last year the country partnered with one of its largest distributors, enabling huge numbers of businesses to begin accepting bitcoin for the most mundane transactions. Furthermore, these normalization efforts have extended beyond El Salvador’s borders. El Salvador needs the support of its citizens, but it also wishes to encourage broader support from other nations. The Central African Republic (CAR) was directly inspired by El Salvador when it briefly became the second nation to adopt bitcoin as a legal currency. However, this effort was simply impossible to sustain in a country where around 90% of citizens do not have internet access, and it was shuttered in 2023. CAR was not the only country to be influenced by Bukele’s government, as he actually sent a team of “Bitcoin Ambassadors” to Argentina upon the election of its newest President last November. Outreach efforts like this will go a long way to ensure that El Salvador is the first country to accept bitcoin as legal tender, but won’t be the last.

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Some of these initiatives highlight the way that El Salvador’s Bitcoin project has radically different aims from the ETF battle in the United States, even though Salvadorans like Vice President Ulloa are naturally heartened by its victory. The ETF is a financial instrument that allows ordinary Americans some extra opportunities to indirectly profit from Bitcoin’s success, while Bitcoin has a radical vision for anyone in the world to take control of their economic fortunes. Nayib Bukele has shown a real interest in fostering Bitcoin as a part of everyday life, as shown by the variety of ways he’s encouraged economic development and his attempts at international outreach. Our community needs fighters like those who pursued the ETF battle, but it’s important to remember that Bitcoin means so much more than a way to earn fiat currency. If Bukele has the chance to really embed Bitcoin in El Salvador’s society, it’ll show the world what kind of success Bitcoin can offer us all.

This post Presidential Election Puts El Salvador’s Bitcoin Future At A Crossroads first appeared on Bitcoin Magazine and is written by Landon Manning.