El Salvador is now reportedly profiting from the Bitcoin investments made by President Nayib Bukele, a major shift for a country historically known for its rampant gang violence and one of the highest homicide rates in the world. Bukele announced on X that the investments have yielded a profit of $3,620,277.13 USD.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, an initiative seen as a key part of Bukele’s social and economic reforms. He announced the purchase of one Bitcoin every day starting the next day.
Despite the risks associated with cryptocurrency’s volatility, the country has continued to promote it as a means of economic reform. A new Freedom Visa program was recently launched, granting residency and a potential passport to 1,000 individuals a year who meet certain financial requirements, primarily for high-net-worth individuals or investors who have a financial threshold of $1 million in Bitcoin or USD.
However, the country’s social reforms have raised concerns of restrictions and violations of fundamental rights, according to Amnesty International. To deal with over 80 gang-related homicides in a three-day period in March 2022, security forces were empowered to arrest anyone suspected of belonging to a gang or providing support to gangs, which led to overcrowding and inhuman treatment in the prisons.
El Salvador reported 7.8 murders per 100,000 in 2022, one of the lowest in Latin America, but some observers say the efforts have done little to enact meaningful change in the country. Bukele has dismissed criticism of his authoritarian rule, claiming it is just a matter of cleaning house.
The country has attracted attention from investors and international organizations such as the Miss Universe pageant, which will be held in El Salvador’s capital, San Salvador. Bukele is currently on a six-month leave to seek reelection, despite the previous constitutional prohibition.
Roger Milano, a 36-year-old engineer in El Salvador, defended the government’s reforms, citing his ability to walk freely in the city, saying Bukele “makes the difference between a criminal and a victim.” ABC News’ Aicha El Hammar also contributed to this report.
