El Salvador recently highlighted the economic benefits that have been brought about as the result of adding bitcoin as a form of legal currency, saying that tourism is up 30% since the nation started using the crypto.
This bitcoin law was brought into effect in September 2021, thus causing bitcoin to become a form of currency alongside the United States dollar. On El Salvador's government website, it outlined that throughout the first months of bitcoin being a form of legal tender in El Salvador, "it was possible to identify the advantages of having added innovation and financial freedom."
The statement on the website additionally signified that tourism was one of the key areas in which it was known specifically how bitcoin has benefited El Salvador's economy. Morena Valdez, head of the Ministry of Tourism, remarked, "The implementation of bitcoin benefited the sector. More tourists and investors have come to see how cryptocurrency works."
Ever since this decision has been made, bitcoin costs have wavered considerably, beginning at around $49,000 in September, then going up to $69,000 in November, and finally going back down to $37,000 at present. Taking on bitcoin as a legal form of currency has additionally aided El Salvador's GDP growth in the eyes of the country's president, Nayib Bukele. He stated in a Twitter (NYSE: TWTR) comment: "El Salvador's GDP grew 10.3% in 2021...El Salvador never had a double digit GDP growth before 2021."
Now, as a result of El Salvador's economic growth, the local community has encouraged the government to begin a bitcoin trainer for community leaders. A crypto platform based in New York, Paxful, has initiated this training program with an ultimate objective "to train them to be replicators in their communities and support them in continuing to break the digital divide," according to Fabrizio Mena, Undersecretary of Innovation.
The plan has been brought about after a survey was conducted by One Central American University, revealing that most El Salvadoran residents do not desire to use bitcoin, nine out of ten El Salvadorans lacking a proper understanding of cryptocurrency in general, and eight out of ten expressing a lack of belief in the usage of bitcoin.