- Bitcoin bonds and Bitcoin City projects remain unfulfilled under Bukele’s second term.
- Mixed reactions from the Bitcoin community about the government’s progress and intentions.
Bukele’s Bitcoin Vision Faces Hurdles in El Salvador
One month has passed since President Nayib Bukele assumed office for his second term, yet his ambitious Bitcoin policy initiatives remain largely unfulfilled. Promised Bitcoin bonds and the highly anticipated Bitcoin City have yet to materialize, casting doubt on the government’s commitment and capability to realize these projects.
Unfulfilled Bitcoin Bonds and City Plans
El Salvador’s National Bitcoin Office (ONBTC) had pledged future announcements regarding Bitcoin bonds, yet the issuance of these financial instruments remains at Bukele’s discretion. Without these bonds, the construction of Bitcoin City, a futuristic tax-free metropolis, remains on hold. This city, envisioned to rise near the new Pacific International Airport funded partially by Bitcoin, has seen little progress beyond this initial investment.
Corbin Keegan, the first resident of the proposed Bitcoin City, has already returned to his home country, expressing uncertainty about the project’s future. This skepticism is shared by many Bitcoin enthusiasts who feel that the promises made during Bukele’s first term remain unfulfilled. Despite a few scholarships granted to students for Bitcoin technology training in Switzerland, the broader educational efforts on Bitcoin have lagged significantly.
Mixed Reactions from the Bitcoin Community
The Bitcoin community in El Salvador is divided. Ishi Kawa, a Salvadoran programmer and Bitcoin critic, asserts that Bukele’s Bitcoin advisors, including prominent figures like Stacy Herbert and Max Keiser, have failed to adequately promote and develop the country’s Bitcoin policy. He suggests replacing these advisors to inject fresh perspective and expertise into the government’s strategy.
Conversely, John Dennehy, director of the educational organization Mi Primer Bitcoin, believes that the government is making significant strides in Bitcoin education. He acknowledges the steep learning curve but commends the progress made since 2021, suggesting that the government is fostering a conducive environment for grassroots efforts to flourish.
Dennehy argues that the focus should be on the long-term benefits of educating the population about Bitcoin, aiming to empower individuals with greater control over their financial lives. He remains optimistic about the potential for rapid Bitcoin adoption in the coming months, especially with the expected Bitcoin bull market likely to attract more attention and curiosity.
Challenges Ahead for Bukele’s Second Term
Looking ahead, Bukele’s second term poses several challenges for the development of El Salvador’s Bitcoin ecosystem. Ishi Kawa highlights the lack of comprehensive Bitcoin education, infrastructure, and business training as significant hurdles. Additionally, the integration of Bitcoin with key economic actors, such as banks and service providers, remains insufficient.
Dennehy notes the potential risks of scams exploiting an interested but uninformed population, emphasizing the need for robust educational initiatives to safeguard users. Despite these challenges, he is hopeful that increased Bitcoin interest will spur further integration and practical use across the country.
Bukele faces a critical period where leadership and effective management will determine whether El Salvador’s Bitcoin experiment can truly succeed and be sustainable in the long term. The nation watches closely, with the Bitcoin community’s faith hanging in the balance.