The Salvadoran government has recently listed the economic benefits of using bitcoin as legal cash. In September, the government of El Salvador made bitcoin (BTC) a national currency, along with the US dollar.
According to the notification on the El Salvador official website, “We were able to recognise the benefits of having introduced innovation and financial freedom” during the first months of bitcoin’s becoming legal money in El Salvador. According to the notice, tourism was one of the first industries where it was able to demonstrate how bitcoin has aided the country’s economy.
Morena Valdez, the head of the Ministry of Tourism (MITUR), stated, “The adoption of bitcoin boosted the industry.” Many visitors and investors have arrived in El Salvador to learn more about cryptocurrencies. She added that according to the poll conducted by the government in the months of November and December 2021, the tourism industry grew by more than 30% after the adoption of bitcoin as a legal currency.
“Expectations of recovery in this sector have been surpassed because 1.1 million tourists were expected and 1.4 million have been received,” the tourism minister stated.
According to the announcement on the government website, “cryptocurrency enhances the potential to do business with more partners anywhere in the globe” when combined with other measures taken by the Salvadoran government.
According to El Salvador’s president, Nayib Bukele, the use of bitcoin as legal cash has also increased the country’s GDP growth.
El Salvador’s GDP grew 10.3% in 2021.
And now its exports (a main driver of economic growth) grew 13% this January, compared to January 2021.
Are we looking at another double digit GDP growth this year?
By the way, El Salvador never had a double digit GDP growth before 2021. https://t.co/f9yMkPpLNJ
— Nayib Bukele 🇸🇻 (@nayibbukele) February 19, 2022
- El Salvador jeopardises nation’s economy by accepting Bitcoin as legal currency
- Is the USA worried about El Salvador’s adoption of Bitcoin as a legal currency?