El Salvador Shuns Foreign Debt: President Bukele Declares Financial Independence in Bitcoin Nation
El Salvador’s president, Nayib Bukele, has decided not to borrow external debt to finance the country’s budget.
El Salvador is a Bitcoin bull country, popular in the crypto sector as Bitcoin is widely accepted here. People can use Bitcoin as currency to pay for goods and services in this country. With Bitcoin adoption, the country has gained global popularity.
On 16 Sep 2024, President Bukele announced that El Salvador will no longer acquire external debt to finance its next general budget.
Although Bukele did not mention Bitcoin word during his speech, many Bitcoin enthusiasts appreciated the role Bitcoin has played in the country’s success. The nation has seen increased global recognition and a boost in tourism.
El Salvador Bitcoin Adoption Attracts Tourists
El Salvador has seen a surge in tourism due to Bitcoin adoption in 2021. The Bitcoin Law, combined with the “Bitcoin Beach” initiative, has made the country a destination for Bitcoin enthusiasts worldwide. According to government reports, tourism grew by 30% in the year following Bitcoin adoption. In 2022, tourism contributed approximately 7.2% of El Salvador’s GDP, a significant boost from previous years.
Bitcoin Adoption Challenges
The adoption of Bitcoin in El Salvador was a tough challenge, as the government faced heavy criticism from global financial regulatory bodies and significant pressure from rival politicians.
In a recent interview with Bitcoin Magazine, Nayib Bukele acknowledged that while the country adopted Bitcoin as a legal currency, expected adoption is still far off. However, he expressed optimism about his decision and the future growth of Bitcoin adoption.
