El Salvador’s acceptance of Bitcoin (BTC) as legal tender in September 2021 has resulted in a significant increase in the country’s GDP as well as tourist growth.
The tourist business in El Salvador has grown by more than 30% since the enactment of the Bitcoin law in September 2021, according to Salvadoran Tourism Minister Morena Valdez.
One of the most crucial sectors for the country’s development is tourism. As a result, President Nayib Bukele has designated it as the year’s second economic boost.
According to Morena Valdez, the Minister of Tourism, expectations for a recovery in the tourism sector have been surpassed, as 1.1 million tourists were expected but 1.4 million were received.
“We did a poll to check the activity according to the before and after of Bitcoin. The tourism sector increased in November and December. This increased by more than 30%,” said Valdez.
El Salvador’s bright future began with bitcoin
The use of Bitcoin has been a technique that has piqued the interest of international visitors. According to Valdez, the flow of tourist visits has shifted since the majority of tourists came from the Central American isthmus’ bordering nations. She stated that the United States currently accounts for 60% of all visitors.
The announcement came momentarily after Salvadoran President Nayib Bukele publicized that El Salvador’s GDP rose 10.3 percent in 2021. The country’s exports, a primary engine of economic development, have also climbed 13 percent year after year in January 2022.
Being the first jurisdiction to recognize Bitcoin as legal cash has both benefits and drawbacks. While the negatives are limited and mostly relate to unknowns while making this decision, there are several pros. El Salvador’s government has likewise laid them out for us to see. They said on the government’s website that this measure would allow the country to be more innovative and financially free.
With the economic blessings that Bitcoin has brought to a tiny country like El Salvador, larger countries may soon follow suit. Many countries have previously said that they are contemplating making Bitcoin legal tender. And, based on the most recent news from El Salvador’s administration, this move might be made much sooner.