El Salvador has launched a training program to educate 80,000 government employees about Bitcoin and prepare them to integrate digital assets into the lives of Salvadoran citizens.
This is a window into Nayib Bukele’s implicit plan to steadily move El Salvador away from a two-currency society centered on the US dollar and Bitcoin, and towards a currency system that uses only Bitcoin.
Bukele’s plan becomes clearer by the day. ONBTC, also known as the “Bitcoin Office,” is designed not only to introduce Bitcoin to a country of about 6.3 million people, but also “to strengthen the standards of governance and public administration excellence in El Salvador.”
Finally, El Salvador received the largest investment in its history this week, with the Turkish company Yilport investing $1.6 billion in two ports, Acajutla and La Union (Bitcoin City), the latter of which has been dormant since its construction in 2008.
Additionally, the State Department noted in its 2024 Investment Climate Statement on El Salvador that “recent improvements in the business climate” have enhanced the country’s strengths as an investment destination.
As Bitcoin becomes fully integrated into El Salvadoran society, including infrastructure and knowledge, the depreciation of the US dollar will gradually diminish in society as Bitcoin’s volatility continues to decrease and its price increases due to the dynamics of supply and demand.
A new kind of currency reform
El Salvador should have a smooth sailing path when it comes to implementing the Bitcoin standard. For example, El Salvador’s currency reform is taking place in a favorable economic climate, providing a more favorable environment for fully integrating Bitcoin than would normally occur when a country implements a new currency.
Usually, when governments undergo monetary reform, they are often constrained by macroeconomic policies. They often have to change due to crises such as hyperinflation. In this regard, El Salvador is well positioned to reform its tenders with flexibility in terms of macroeconomic policies.
And Satoshi Nakamoto, Bitcoin’s pseudonymous founder, has already done most of the work.
While monetary reform alone will not solve the ongoing crisis, Bitcoin legal tender law combines all the aspects that improve the economic situation in itself. In the words of the IMF, Bitcoin itself is a new currency, and it is also a “fiscal and monetary measure.”
The IMF calls a central bank “the agency of a country responsible for introducing a new currency” and must develop a detailed plan for distributing the new currency. In the case of Bitcoin, there was no need for a central bank. Bukele introduced legislation and relied on the private sector to build the initial infrastructure of a public wallet and ATM network.
A new era in El Salvador
Countries can use their old names or add “new” to emphasize continuity. El Salvador’s decision to make Bitcoin its legal currency marks the beginning of a new monetary era. Psychologically, Bitcoin has had an early stabilizing effect on the country by introducing a spirit of innovation and progress.
Bukele is currently pursuing open trade and free market policies, allowing the dollar and Bitcoin to circulate side by side. Bitcoin’s superior design will naturally replace the USD. Or, in the event of a dollar crisis, Bukele could invalidate the USD within El Salvador’s borders.
Bukele wants to make El Salvador a global hub
Bitcoiners often refer to El Salvador as the “Bitcoin Nation,” which is more accurate than most people realize.
The certification program for 80,000 employees in El Salvador is a clear step towards fully integrating Bitcoin into Salvadoran society and moving away from the dollar.
The certification program will help the underbanked and remittance recipients learn how to use Bitcoin, and will help public officials learn how to integrate Bitcoin into their public services.
Widespread Bitcoin certification for public officials will improve El Salvador’s economic stability over time. Government officials will then understand how Bitcoin can be used in public administration. Know-how in public administration can streamline the restructuring of public policy and governance in El Salvador, fostering a culture of innovation within government agencies.
El Salvador’s early adoption of Bitcoin and its skilled workforce could make it an attractive partner for investment. The country could become a Bitcoin hub, attracting talent from around the world. Bitcoin education for public administrators could improve El Salvador’s economy, governance, and international reputation.
As more and more countries consider adopting Bitcoin, El Salvador’s large pool of government employees with Bitcoin expertise could make the country an attractive partner for collaboration and investment, and even become a global hub in the Bitcoin world.
Also Read: How El Salvador Is Introducing Chivo Wallet to Embrace the Bitcoin Economy