El Salvador’s Bitcoin Renaissance: A Vision for the Future
In the fast-evolving world of cryptocurrency, certain figures and nations stand out as pioneers, charting new courses that seem unimaginable to most. El Salvador, under the leadership of President Nayib Bukele, has embarked on a bold mission to integrate Bitcoin into the nation’s financial and social fabric. The vision behind this ambitious endeavor, led by the National Bitcoin Office (ONBTC), is one of revolution, renaissance, and a new era of prosperity.
Stacy Herbert, Director of the ONBTC, embodies this vision with passion and determination. Her journey, along with her partner Max Keiser, traces back to the early days of Bitcoin.
They were among the first voices championing Bitcoin as more than just a technological innovation but as a societal force capable of transforming economies. Today, their mission has aligned with Bukele’s, positioning El Salvador as the epicenter of this transformation.
At the heart of this mission is a quote Herbert shared, encapsulating her resolve:
“Someone needs to be the keeper and reiterator of the vision. There’s a ton of work to do. When you have to walk a thousand miles and have only taken the first step, it feels like a long way. It helps if someone is saying, ‘We are one step closer, and the goal is not a mirage.”.
For Herbert, this is not just a motivational adage. It’s a reminder that transforming a country, especially one embracing a novel financial path, is a long journey. But with the right leadership and perseverance, success is not just possible; it is inevitable.
The Birth of Bitcoin Country
El Salvador’s journey to becoming a “Bitcoin country” is nothing short of remarkable. What started as a vision has rapidly evolved into a tangible reality, beginning with the country’s decision to adopt Bitcoin as legal tender in 2021.
While many questioned this bold move, President Bukele, and the ONBTC have demonstrated an unwavering commitment to their vision, educating the country and ensuring that Bitcoin adoption isn’t just a fleeting experiment but a cornerstone of national policy.
Herbert reflects on the early days of their journey when they arrived in El Salvador in 2021.
It was a time of both excitement and challenges. The price of Bitcoin was riding high at $69,000, but soon after, it took a dramatic nosedive, hitting a low of $16,000 in the aftermath of broader market turmoil.
“When we first arrived three years ago, bitcoin hit $69,000 and then it proceeded to tumble down to something like $16,000,” Herbert recalled. This period tested not only Bitcoin’s resilience but also the commitment of its early adopters in El Salvador.
The country was at a crossroads: to embrace Bitcoin or fall into the trap of broader crypto adoption, which often involves volatile tokens and projects prone to collapse. “FTX collapsed, BlockFi collapsed, and Celsius collapsed,” Herbert noted, explaining how these incidents added to the confusion among Salvadorans who were still trying to understand Bitcoin’s true potential.
Herbert, however, was clear: El Salvador would not be swayed by the wider crypto industry’s failures. Instead, the country would follow the path of Bitcoin alone. “There were two paths: You could be crypto country or you could be Bitcoin country,” she explained.
The distinction is vital. Crypto, with its speculative nature, often resembles the unpredictability of gambling economies, where a few entities always profit at the expense of the many. Bitcoin, on the other hand, represents stability, scarcity, and the potential to build a lasting financial ecosystem.
Building a Renaissance
The concept of El Salvador’s “Bitcoin Renaissance” has deep roots in history.
Herbert frequently draws parallels to Florence, Italy, during the Renaissance period. Florence wasn’t just a hub for art and science but also a financial powerhouse, thanks to the introduction of the Florin, the most stable currency of its time.
Florence attracted the best and brightest from across Europe, becoming the epicenter of culture, commerce, and innovation.
Herbert envisions a similar future for El Salvador. She believes Bitcoin can serve as the modern-day equivalent of the Florin, creating a “positive feedback loop” where wealth, talent, and innovation concentrate in El Salvador.
This vision, shared with President Bukele and Keiser, is what fuels the ONBTC’s mission.
In this new era of human flourishing, Bitcoin is more than just a currency; it’s a tool for empowerment. Entrepreneurs, investors, and developers from around the world are now flocking to El Salvador, drawn by the promise of building something extraordinary.
“We think that same sort of process could happen in El Salvador,” Herbert declared, believing that Bitcoin’s sound money principles could lay the groundwork for the country to thrive.
Education as the Foundation
One of the key pillars of this transformation has been education.
Since the founding of the ONBTC in December 2022, Herbert and her team have been tireless in their efforts to educate Salvadorans about Bitcoin. This isn’t just a superficial attempt to onboard users; it’s about fundamentally changing the mindset of an entire population.
The ONBTC has already made significant strides, training 80,000 civil servants and integrating Bitcoin education from kindergarten through university. Herbert emphasized the importance of aligning these educational efforts with Bukele’s vision for the country. She believes that for El Salvador to truly embrace Bitcoin, its citizens need to not only understand the technology but also adopt a mindset of greatness.
“To be extraordinary, you have to have people in the government and in the population who are ready to be extraordinary,” she said. This mindset shift is crucial because it positions El Salvador not just as a user of Bitcoin but as a leader in the global Bitcoin economy.
To achieve this, Herbert has brought in some of Bitcoin’s most respected developers and educators to train the next generation of Salvadoran leaders. Notable figures like Jimmy Song and Giacomo Zucco have played vital roles in this educational push, teaching both developers and government officials the technical and philosophical underpinnings of Bitcoin.
The Role of President Bukele
A recurring theme in Herbert’s narrative is the critical role of President Bukele.
His leadership and vision have been central to El Salvador’s Bitcoin experiment. With an approval rating above 90%, Bukele is one of the most popular leaders globally, and his unwavering support for Bitcoin has made all the difference.
“You can’t just have President Bukele [believing in Bitcoin],” Herbert stressed. “You need at least a portion of his 80,000 civil servants to understand what he is trying to achieve.”
Bukele’s vision extends beyond simply making Bitcoin legal tender.
He sees Bitcoin as the foundation for building a new, prosperous future for El Salvador. From attracting entrepreneurs through passport programs to establishing Bitcoin banks, Bukele’s administration is laying the groundwork for a flourishing financial ecosystem.
In April 2024, Bukele announced that El Salvador would issue 5,000 passports to scientists, engineers, artists, and philosophers, to attract top global talent. This bold move is part of Bukele’s broader strategy to position El Salvador as a hub for innovation and entrepreneurship.
What Lies Ahead
As the ONBTC marks its 21st month of operations, the organization is far from done. Herbert hinted at big announcements coming soon, including the unveiling of Bitcoin banks, which will play a crucial role in developing El Salvador’s capital markets.
With education, infrastructure, and leadership in place, El Salvador’s Bitcoin renaissance is just beginning. As Herbert put it, “We’ve walked a thousand miles in the last 21 months, and we now have another thousand-mile journey to start.”
This journey, fueled by the transformative power of Bitcoin, is set to redefine not just El Salvador’s future, but potentially the future of financial systems worldwide. In this vision, El Salvador stands as a beacon of hope, proving that with the right mindset, leadership, and vision, even the smallest nation can lead a global revolution.