El Salvador became the first nation to recognize Bitcoin as legal tender in June 2021, driven by President Nayib Bukele's ambition to improve the troubled economy. Initial plans included providing $30 worth of Bitcoin to citizens backed by a $20 million purchase, with adoption scheduled for September 2021. However, the rollout encountered severe challenges, including a 20% crash in Bitcoin's price, server issues from the contracted company BitGo, and a poorly received government crypto app. These failures sparked public protests, revealing the complexities and risks of implementing radical crypto policies in a high-poverty nation.
El Salvador's experiment with Bitcoin as legal tender led to immediate setbacks, including a 20% price drop and issues with the national crypto app.
Bukele's Bitcoin plan was touted as a way to revitalize El Salvador's economy, but it quickly faced backlash as technical failures and market volatility unfolded.
Despite initial excitement, the reality of adopting Bitcoin revealed significant difficulties, including protests and the disillusionment of citizens who weighed risks against potential rewards.
The gamble to allocate $200 million of the national budget to Bitcoin highlights the risks associated with cryptocurrency investments in economically struggling nations.
Collection
[
|
...
]