El Salvador is unashamedly a Bitcoin destination: from Bitcoin conferences, big name Bitcoiners, "Bitcoin accepted here" signs, a laser-eyed president and oodles of Bitcoin investments streaming into the country like transactions into the Bitcoin mempool. The nation is the first and greatest sign of Bitcoin adoption in the world. I spent two weeks travelling in El Salvador living on Bitcoin.
I tried to pay for every single thing: food, accommodation and even a wig with Bitcoin. I attended the graduation ceremony of My First Bitcoin diploma program. I interviewed people on the streets of San Salvador.
I shared my Bitcoin knowledge with this beautiful country. So what's it actually like to use Bitcoin in El Salvador? Under Article 7, the law states: "Every economic agent must accept Bitcoin as a form of payment when it is offered by someone who purchases a good or service.
" However, it doesn't say how to do so. So it's 6:30 a. m.
on Tuesday, 15th November. I've just technically slept in a hotel for free because when I came here last night I tried to pay in Bitcoin and they didn't allow that at that time. After lots of back and forth, the solution we came to was that I would go to a Chivo ATM, withdraw dollars for Bitcoin and then pay the hotel with those dollars here.
Obviously, I'm not going to do that, so I'm going to try again this morning to understand why they're not accepting Bitcoin, even though I saw the Chivo app on the lady at the reception's phone. So let's see how it goes. Where are we?
We're in the office, about to pay the bill for the first time. This is the IBEXPay. So 20% tip.
It's faster than the card. High five. Confusion about how to pay with Bitcoin is a common problem across El Salvador.
For example, many people don't know that they should use the Lightning Network for everyday transactions. The Lightning Network enables near instant Bitcoin payments with low fees. These payments are denominated in SATs, the Bitcoin equivalent of cents to the dollar.
He's wearing a hat with Strike logo. The giant sign just over there which says they accept Bitcoin. We got that.
So that's hilarious. At first she thought that I was trying to send her dollars because she thought Chivo meant Bitcoin. Then I showed her that it's Bitcoin base chain and then within the Chivo app you have to select Lightning.
And so first I was trying to send Lightning to a Bitcoin address and realize: "Oh, wait. It's not even Lightning. " Wow.
Not to be done. Not to be done. I made several mistakes too, like spending a 10,000 SATs fee or a $1.
50 on a tip for a waiter because I forgot to switch to the Lightning Network. It doesn't sound like much, but if I use Lightning, that fee would have been a fraction of a penny. I was pretty impressed by the quality of mobile data coverage across the country.
Only in certain places like near volcanoes did reception drop out. There's no signal. So there's no signal here.
So how can you accept Bitcoin if there's no Internet signal? But that didn't stop me from sending SATs to my guide at 2300 meters. You scan, pay, face ID, just like that.
Okay. Thank you. De nada!
I'm in San Salvador. And I'm going to try and give out some Bitcoins to people if they answer five questions. Ain't nobody shooting a dude holding a clipboard, am I right?
When was the last time you used Bitcoin? About one month ago. Never.
Never? We don't have Bitcoin. Okay, so three months ago.
So one month. So, three months, one month, okay. Yesterday.
Great. What's your opinion on Bitcoin? Well, that's the coin of the future.
I'm going to need it right here. So we're trying to use it every day. There are different ways to pay, you know, on a Bitcoin.
We have a bunch of applications over there. Yeah. So we really don't need it.
Quite good. Quite good money. Okay.
It's improved sending of money. What's your opinion on the president? On Nayib Bukele?
Oh, he is the best, a 100. We have a good president right now, so we enjoy it. Bitcoin, I think, was a bad idea.
The people is not ready. But it is okay for how he's driving the country, it is a big point for him. Right.
Yeah. He's doing a good job. An excellent job.
Okay. If you could sum up the atmosphere of El Salvador right now, in one word, what word would you use? Surf City.
Surf City? Yes! And then if you could sum up the atmosphere in El Salvador in one word, what would you say?
Safety. In 2021, a group called Mi Primer Bitcoin saw an opportunity to shape Bitcoin education in El Salvador. They formed a school and established the first Bitcoin diploma programs in the country.
I attended the third graduation ceremony for kids aged 13-15 in a town on the outskirts of San Salvador. I was inspired by their understanding of Bitcoin. Let's not forget the motivations behind the Bitcoin law that was voted in on June 8th, 2021: creating jobs, financial inclusion and stimulating the economy.
El Salvador's GDP is hockeysticking higher. Job creation has ticked up. Tourism soared over 30% just this year.
Figures for the government supported Bitcoin wallet, El Chivo, would suggest that the country is banking the unbanked. Although paying with Bitcoin is hard right now, I'm also being demanding. The mere fact that Salvadorans can point to the Bitcoin B and understand what it is, shows just how far ahead El Salvador is on the Bitcoin adoption curve.
In one year, Bitcoin payments in El Salvador have surged from a tiny surfer community on the beach to being an accepted means of payments around the country.
