Since El Salvador adopted Bitcoin as legal tender in September 2021, a number of quick judgments have been issued declaring this move a failure, with some pundits even going so far as to suggest that Bitcoin is somehow responsible for the economic challenges that existed in El Salvador long before Bitcoin was created. However, traditional financial gurus, talking heads, and even representatives from the International Monetary Fund (IMF) who advocate this viewpoint are completely missing the point. El Salvador's government debt amounted more than 20 billion USD after Salvadoran President Nayib Bukele revealed his proposal in July to offer to acquire publicly owned bonds expiring between 2023 and 2025.

El Salvador's debt problems are not the consequence of the country's investment in innovative financial technology such as Bitcoin. El Salvador's acceptance of Bitcoin, on the other hand, is a step toward recovering monetary sovereignty, giving its residents with access to financial services and possibilities, and tackling the types of structural problems that have traditionally disadvantaged Salvadorans. El Salvador has spent slightly more than 100 million USD on Bitcoin since becoming it legal tender last year. According to the new rule, all companies in the nation must accept Bitcoin as payment. Around the same time, the government established a trust with 150 million USD in public funds to assist dollar conversions and released its digital wallet "Chivo Wallet," which grants people who download it 30 USD in Bitcoin.

Sources:

https://tradingeconomics.com/btcusd:cur

https://apnacryptonews.com/cryptocurrency-news/bitcoin-news/dips-be-damned-el-salvador-is-stronger-due-to-bitcoin-crypto-news/

https://www.coinfi.com/news/1318367/dips-be-damned-el-salvador-is-stronger-because-of-bitcoin

https://cointelegraph.com/news/dips-be-damned-el-salvador-is-stronger-because-of-bitcoin

https://www.investing.com/news/cryptocurrency-news/dips-be-damned-el-salvador-is-stronger-because-of-bitcoin-2891368