El Salvador has been in the limelight of the crypto world for the last few months. The president, Najib Bukele, spearheaded one of the boldest political and economic moves of the decade. Under his leadership, El Salvador became the first country to lawfully permit bitcoin legal tender. The move sparked a wildfire in the crypto world, with many considering Bukele a trailblazer for the country. While some lauded the move as a beneficiary to the economy and the global economy, many others opposed it vehemently. However, things changed after considering the economy of the country. Within the scope of this article, we will explore these reasons in more detail. El Salvador Pre-Legalization El Salvador is a small Central American nation that is home to over six million people. It used the El Salvador colón as its official currency and relied on the USD. The South American state has an economic ranking below the global average. Despite being in the middle of the region, the world still perceives El Salvador as one of the poorer nations. A Struggling Economy El Salvador has a GDP of $54.6 billion, and 7% of its population is unemployed. Almost 20% of its GDP comes from remittances, which amount to $4.5 billion. And about 88.2% of GDP goes towards clearing public debt. Furthermore, corruption and favoritism are prominent contributors to their current economic position. Various studies indicate that corruption is a major obstacle to econ...
