The Intelligence from The Economist

Bitcoin of the realm: El Salvador’s experiment

Sep 7, 2021
Alice Fullwood, Wall Street correspondent for The Economist, dives into El Salvador’s bold Bitcoin experiment initiated by President Nayib Bukele. She explores the government's hopes for economic growth and financial inclusion through forced crypto adoption but notes skepticism from both locals and international institutions. The conversation touches on the practical challenges, such as currency volatility and political instability, while also reflecting on the broader implications for remittances and foreign investment.
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ANECDOTE

Store Owner's Hesitation

  • Store owner Carolina Zavala wasn't preparing for Bitcoin's adoption.
  • She said she didn't understand it, hoping to catch up eventually.
ANECDOTE

Early Bitcoin Adoption

  • Adela Avendaño, another store owner, has been accepting Bitcoin for months.
  • She sells mainly to foreigners and demonstrated a Bitcoin purchase.
INSIGHT

Bitcoin Experiment

  • El Salvador's adoption of Bitcoin as legal tender is a bold experiment.
  • It aims to boost investment, reduce costs, and increase financial inclusion.
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