Napoleon Osorio, El Salvador’s first taxi driver to accept bitcoin, credits President Nayib Bukele’s bold decision to make the cryptocurrency legal tender three years ago with transforming his life. The 39-year-old businessman, once unemployed, now runs a successful taxi and car rental business, employing 21 drivers and acquiring four rental vehicles thanks to bitcoin’s rise.
Bukele’s gamble to integrate bitcoin into the economy was aimed at revitalizing the dollarized nation and bringing financial services to the unbanked. Despite investing hundreds of millions in bitcoin and launching the Chivo Wallet app, the initiative faced challenges. The IMF expressed concerns about the cryptocurrency’s volatility and hesitated on a $1.3 billion loan, though a preliminary agreement was reached in August.
While some, like Osorio, have benefited, public adoption remains low. A recent study revealed that 88% of Salvadorans have not used bitcoin, with only 1% of remittances being made in the cryptocurrency. Bukele acknowledged that while bitcoin adoption has not been as widespread as hoped, it remains voluntary and has benefitted those who chose to use it.
Economists and critics argue that Bukele’s policies limited bitcoin’s potential by excluding it from key financial functions. Efforts to educate Salvadorans on cryptocurrency continue, with 35,000 students trained so far. The mixed fortunes of bitcoin, trading recently around $52,000 after a peak of $73,616 and a trough of $16,189, reflect the ongoing volatility of this ambitious financial experiment.
