El Salvador officials discuss Bitcoin’s role in the country’s revival

Adoption by El Salvador in 2021 of the first cryptocurrency as legal tender has been a key element in the country’s exit from the crisis. In an interview with Forbes said Vice-President Félix Ulloa.

The crackdown on street gangs to bolster security and Bitcoin proved to be one of the key drivers of a tourist boom, the politician noted. The cryptocurrency has simplified payments for visitors, sparing them the headaches of currency exchange.

“Undoubtedly, tourism and the use of digital currencies go hand in hand and are a sign of the future and revival of our country,” he said.

The integration of Bitcoin has attracted new investors to El Salvador. According to Ulloa, more than 80 Bitcoin-industry companies are operating in the country in some form.

He also pointed to the development of cryptocurrency mining, one of the pioneers of which was the state-backed project Volcano Energy with the participation of Tether.

“Nevertheless, with the enthusiasm that began in the digital economy sphere around Bitcoiners, El Salvador as the first country to adopt cryptocurrency as legal tender found itself at the forefront and attracted many investors who have effectively settled in the country,” Ulloa said.

The authorities’ attention to new technologies and an improving crime situation drew the attention of internet giants Google and Meta, which plan to collaborate with El Salvador, the politician said. This was also aided by the tax incentives law for tech companies, he clarified.

The goal of the partnership with Google, the vice president said, is the modernization and digitalisation of the Salvadoran government and the fight against corruption among public officials.

As reported, in August the world’s largest cryptocurrency exchange Binance said that it was the first to receive approval to operate in the country from two regulators.