Skip to content Skip to sidebar Skip to footer

After Bitcoin Became Legal Tender in El Salvador, Tourism Went Up 30%.

Approximately $300 million more than planned was reported by the country’s Minister of Tourism during the fourth quarter of 2021. According to local media sources from the 21st of February, the law has increased tourists by 30%. President Nayib Bukele ranked tourism as the country’s second economic boost for 2022 in a new study, which stated that the industry is critical to the country’s future prosperity.

The number of tourists from outside the continent has risen since El Salvador’s adoption of bitcoin as legal tender. Until recently, the majority of the visitors to the area came from Central American countries near the border. U.S. citizens make up more than half of all tourists

After the pandemic, tourism minister Morena Valdez claimed the sector’s recovery had exceeded expectations. Rather than aiming for 1.1 million visitors, the government ended up with 1.4 million.

In the past, the El Salvadorian government has drawn criticism for its dealings with bitcoin. Since recently, there has been no news of protests by citizens. However, the country is considering granting citizenship to foreign investors, so there may be even more advantages for them.

The Bitcoin movement has helped El Salvador

Decisions about how much of an impact bitcoin would have on the economy spurred debates around the world. When President Bukele stated that bitcoin would have a profound impact on the economy, he was unwavering in his belief.

Bitcoin usage, according to Bukele, has beyond expectations. Within a month after its launch last year, the Chivo Wallet had been used by over two million people.

People outside of the country appear to disagree. El Salvador has been encouraged by the IMF to discontinue the use of bitcoin as a medium of exchange due to potential threats to the country’s financial stability. Moody’s, on the other hand, has increased El Salvador’s risk rating.

***

Leave a comment