El Salvador introduced bitcoin as a legal tender in September 2021, and the move appears to have led to significant growth in both national GDP and local tourism development. According to El Salvador’s Tourism Minister Morena Valdez, El Salvador’s tourism business has grown by more than 30 percent since the enactment of the Bitcoin Act in September. Meanwhile, according to a separate announcement by President Naib Buckel, the country’s GDP will grow 10.3 percent in 2021. According to Buckle, in January 2022, the country’s exports, a key source of economic growth, grew 13 percent year-over-year.
“We conducted a survey to compare activity before and after the introduction of Bitcoin. In November and December, the tourism industry grew,” Valdez said.
In an interview with local news agency El Salvador News English, Valdez indicated that it had risen more than 30 percent.
The acceptance of Bitcoin in El Salvador, according to Valdez, has affected the flow of tourist travel, with a significant increase in the number of visitors from the United States. Prior to the legalization of bitcoin, most tourists came from countries bordering Central America’s Isthmus, he said, estimating that 60 percent of tourists now come from the United States.
According to the ministry, El Salvador’s tourism growth has exceeded government estimates, hitting 1.4 million visitors instead of 1.1 million.
El Salvador’s GDP grew 10.3% in 2021.
And now its exports (the main driver of economic growth) have increased by 13% this January compared to January 2021.
Are we looking at another double-digit GDP growth this year?
However, El Salvador never doubled its GDP before 2021. https://t.co/f9yMkPpLNJ
– Naib Buckle ????????? (@Nibukele) February 19, 2022
Buckley also recently tweeted that El Salvador has managed double-digit GDP growth for the first time in history since the adoption of the bitcoin law.
The Salvadoran president’s decision to introduce Bitcoin so firmly into the economy continues the global debate over cryptocurrency.
Buccaneer has previously said that the adoption of bitcoin in the country has exceeded expectations. According to the government, last year, more than two million citizens began using the Chivo wallet within a month of its launch.
But those outside the country think differently. The International Monetary Fund (IMF) has repeatedly requested El Salvador to exclude Bitcoin as a currency, citing risks to financial stability.
But despite the criticism, Buckley is adamant in his decision and says Bitcoin will bring tremendous benefits to the economy.
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