When a president boasts that he manages the country’s wealth from his smartphone while naked, it hardly inspires confidence
Save time by listening to our audio articles as you multitaskIn June last year, at a cryptocurrency conference in Miami, Mr Bukele announced that the Central American country would be the first to adopt bitcoin as an official currency, alongside the American dollar. In September, a day before passing the so-called bitcoin law, which made it compulsory for businesses to accept the cryptocurrency, Mr Bukele also started to use public funds to invest in bitcoin.
Similarly, only a fifth of businesses follow the requirement that they accept bitcoin. This is despite the central bank’s promise to exchange the cryptocurrency for dollars immediately, to shield them from volatility. In El Zonte food kiosks only accept cash. At a hotel the receptionist says some people do use bitcoin to settle their bills, “but usually Americans”.
That such a volatile asset could be made legal tender at all says much about Mr Bukele’s style of leadership. Since taking office the “world’s coolest dictator”, as he calls himself, has ruled the country of 6.5m like a private fief. After winning a majority in elections in 2021, he appointed loyalists to institutions such as the constitutional court. There was no debate on making bitcoin legal tender, notes Claudia Ortiz, an opposition lawmaker.
Mr Bukele tweets about bitcoin in English. That suggests his audience is abroad. Indeed the president, who has a team dedicated to monitoring popular opinion, has been talking less about bitcoin of late, having shifted his focus to gangs. Since a spike in killings in March, some 40,000 people have been arrested. Such autocratic policies are popular. Mr Bukele’s approval ratings hover at around 80-90%.
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