El Salvador’s Bitcoin Push Was a “Complete PR Move,” According to Bukele’s Advisers

The decision of El Salvador to adopt Bitcoin as legal tender remains debatable. While some have praised President Nayib Bukele's move, others claim it was more of a publicity stunt.

A recent report by TIME Magazine correspondent Vera Bergengruen highlights this perspective. The report notes President Bukele overturned the country's international perception through his Bitcoin strategy.

El Salvador's Bitcoin Adoption as a PR Strategy

In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. The move aimed to boost the economy and promote financial inclusion.

However, according to Bergengruen, the real motive was rebranding the country's image rather than improving its economy.

In an interview with Pod Save the World, Bergengruen said Bukele's promotion of Bitcoin was more aboutpublic relations than real economic reform.

His team reportedly admitted that the goal was to shift the global narrative about El Salvador. They wanted something that would get attention," she stated, suggesting the move was more about international recognition than helping Salvadorans.

Bukele, who previously worked in public relations, saw Bitcoin as a tool to change the world's view of El Salvador.

[Bitcoin] was never really meant to change the economic situation in the country," said Bergengruen.

Was Bitcoin Adoption to Attract Foreigners?

The report also suggests that Bukele's Bitcoin strategy focused more on tourists and foreign investors than the everyday Salvadoran.

According to Bergengruen, Bitcoin was presented as a grand project to outsiders, and its adoption was heavily promoted to attract foreign attention.

While Bitcoin enthusiasts applauded the decision, the implementation faced challenges initially. Many locals were unfamiliar with cryptocurrencies, and the Chivo wallet, designed for Bitcoin transactions, experienced several technical issues.

The initial enthusiasm around the move soon turned into confusion for many residents. In addition, the report claims that Bitcoin's potential benefits, which include improving remittances for Salvadorans, were not the plan's primary focus.

Instead, it seemed more of a way for Bukele to distract from other pressing issues in the country, like crime and economic struggles.

Three Years of Bitcoin Adoption: Profits, Initial Criticism, and Future Prospects

Despite criticism, El Salvador has managed to profit from its Bitcoin holdings. According to recent reports, the country has gained over $31 million in profit three years after adopting Bitcoin.

El Salvador has been buying Bitcoin daily since 2021, and the president regularly shares updates about the purchases on social media. The country bought Bitcoin at an average price of $43,877, and its value has climbed to around $58,300.

According to its Bitcoin tracking site, El Slavador's total holdings are worth more than $318 million. This means the country has made a $31 million profit since acquiring Bitcoin. This profit has given Bukele's plan some credibility, even though it has faced many challenges.

When Bitcoin adoption first began in El Salvador, many critics were concerned about the cryptocurrency market's volatility.

At one point, El Salvador's Bitcoin holdings were significantly down due to the market crash following the FTX exchange collapse. Bitcoin fell to around $16,000, causing fears that Bukele's gamble had backfired. However, the recent recovery of Bitcoin's price has turned things around.

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