make official Bitcoin as legal tender was just the kickoff for El Salvador for a series of strong changes in security, investment, education and technology. Nolvia Serrano, Marketing Director of Goto Capital, has been working for more than 5 years in crypto and blockchain technology and now, in view of the future of this country, she shares with us her vision of the drastic and explosive changes that have positively impacted the country since the arrival of President Nayib Bukele.
Santiago Cassina (SC): How did the country receive the officialization of Bitcoin as legal tender?
Nolvia Serrano (NS): Seeing what is happening in El Salvador with the Bitcoin law, I I think there is no doubt that it has been a decision that has brought many benefits to the country. As a result, the country has had a rebranding, since it had usually been known as an insecure country, backward in terms of technology. Currently the international perception of El Salvador is that it is an innovative country and this has been a consequence of the Bitcoin law, with a new technology that is being adopted in our country.
SC: Tell us a little about the impact that President Bukele’s decision to eradicate violence had on tourism
NS: Now we have crypto and other companies that have decided to establish themselves in the country. Tourism, well, I think that for the first time we have caught up with Costa Rica, which had always lagged behind in terms of tourism growth.
Before, most of the visitors we had were domestic tourists, and from Guatemala and Honduras. Today our tourism has increased with visitors from the United States and Europe. This is the result of the changes that are being made in the country in relation to security, which has been an issue that has plagued the country for years. And today people feel freer, calmer. Now ordinary Salvadorans hope that the country is heading in the right direction.
That worry that existed before clouded many other parts of daily life. For example: there was no free recreation, people could not go to the park due to the concern that something might happen to them, not even walking at night. They are things that today have disappeared. People feel freer to do outdoor activities, and especially in areas that were classified as dangerous. And that also moves tradebecause if families can circulate, then merchants can also sell.
SC: The decision to make Bitcoin official was implemented in a short time. What could you tell us about it?
NS: I understand why strategically it was done suddenly and it is something that no one can take away from El Salvador today: it is the first nation that has bitcoin as legal tender.
Although there are mistakes that one makes because it is an unknown path, I believe that the important thing is that they have known how to learn from each step that has been taken to then go heading in the direction that the government wanted. Now a lot of remittances are coming in, and the savings on commissions is quite large. But it was also about financial inclusion, banking. Yes, it is true that not all people in El Salvador are using Chivo Wallet, however the level of penetration it has had has been quite high. Let’s agree that it is a tool that people can use today to send and receive funds. And the most important thing is that people who had to pay an exaggerated commission to send funds can now use this wallet.. Before, 70% of the population was unbanked, AND today, to say that those 70% already have a tool to transfer funds, and that they can use bitcoin to make payments, is a big step for them.
Before, if a person wanted to send funds, they had to take the time to walk, take and pay for the bus, pay the commission to send the funds and return home paying for the bus again. For his part, the one who received the funds had to do the same, also running risks by carrying the money. If we see the Bitcoin law from that point of view, it has been a success in El Salvador.
SC: What are the next steps according to your vision?
NS: I think the Bitcoin law opened this new window for all investors who are interested in Bitcoin or crypto in general. As this is a subject that involves many aspects, I think the law has fallen short, for example in terms of tokenization. To specify how the tokenization issue is going to work, seeing it legally, more than pure technology. So, with these packages of laws that the government is launching, I think they are going to help create a more favorable climate for investment.
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