El Salvador is the first-ever country in the world to accept Bitcoin as a legal tender. The step is seen as an economic experiment by financial organizations like IMF. However, despite all the setbacks and criticism, President Nayib Bukele has continued to support his decision to integrate Bitcoin into the main financial infrastructure of the country.
Recently, the official records revealed that the GDP of the gross domestic product increased to double-digit for the last year. The news comes at the time when Bitcoin prices are cascading and shows to make a good case for flagship cryptocurrency adoption. Local media outlets reported that the GDP was recorded at an all-time high of 10.3%.
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Banco Central recently issued a detailed analysis of the economic performance of El Salvador for the last year. As per the report, during 2020, amidst the onslaught of the COVID pandemic, the GDP for the Central American country decreased by 7.9%. The latest tweet by President Bukele claimed that in the first month of 2022, the GDP raised to 13%.
He also added that another double digital GDP growth could be in the cards for the country, which is a clear indicator of improvement for the region. Banco Central report also noted the annual exports close was recorded at $564 million in 2021. The exports were highest in the last 30 years of the country’s history.
Both internal and external stakeholders have inflicted harsh criticism on Salvador’s decision to work with Bitcoin on a state level. IMF was in a negotiation with the Salvadorian government for a $1 billion loan called the step an experiment and expressed reservations about the broader impact of the Bitcoin-dependent economy.
Meanwhile, some citizens faced issues with the Chivo wallet. The Chivo wallet is a government-issued digital wallet that promised citizens to give away $30 worth of Bitcoin upon a new sign-up. However, some people claimed that their Bitcoin reserves disappeared without warning. Despite all the above issues, Bukele has shown a resolute to continue to keep going on his Bitcoin legal tender plans.