Bukele says Bitcoin boosted El Salvador's global image

President Nayib Bukele recently discussed El Salvador's adoption of Bitcoin (CRYPTO:BTC) as legal tender and its impact on the country's image in an interview with Time Magazine. 

Bukele acknowledged that while Bitcoin adoption did not expand as rapidly as anticipated, it played a pivotal role in rebranding the nation and attracting global attention. 

Reflecting on the decision to adopt Bitcoin in 2021 through the Bitcoin Law, passed with a supermajority in the Salvadoran Congress controlled by his Nuevas Ideas (New Ideas) party, Bukele admitted the initiative's mixed results. 

He pointed out that only about 12% of Salvadorans have made at least one Bitcoin transaction, despite substantial investments in the national Chivo Bitcoin wallet. 

However, he emphasised that the move had broader benefits beyond just financial adoption. 

Bukele highlighted that the Bitcoin initiative significantly enhanced El Salvador's global profile, stating, "It gave us branding, it brought us investments, it brought us tourism." 

This sentiment was echoed by Damian Merlo, a key marketing advisor to Bukele's administration, who described the decision as a "genius" move and "the great rebranding." 

Merlo noted, "We could have paid millions to a PR firm to rebrand El Salvador. Instead, we just adopted Bitcoin." 

However, El Salvador's embrace of Bitcoin has strained its relationship with international institutions like the International Monetary Fund (IMF). 

The IMF initially opposed the Bitcoin policy, citing potential risks and even urging Bukele to abandon it. 

This friction also complicated El Salvador's efforts to secure credit from the organisation. 

Despite these challenges, recent reports suggest that tensions between El Salvador and the IMF have eased. 

The country has made progress in negotiations, agreeing on the need to "enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project." 

This indicates a shift toward cooperation and a more balanced approach to the nation's Bitcoin strategy.

At the time of reporting, the Bitcoin price was $57,496.81.