El Salvador president Nayib Bukele declared bitcoin as legal tender, setting off an explosion of interest in the crypto world. The announcement came after the president, an outspoken technocrat, proposed a bill to the parliament to legalize bitcoin use in the country. According to some, this move would transform the economy of a country known for its struggles. The legalization of bitcoin was supposed to iron out most of the issues the country’s economy faced and shift the falling trend. However, while the deal held very lucrative prospects for the country, they have yet to be realized. The change in the legal tender has, for the time being, had no positive effects on the Salvadoran economy. As discussed below, this lack of change has left the country in economic turmoil. Still in the Rapids There has been no significant change in the economy of El Salvador despite legalizing bitcoin. The move proved to be a complex undertaking, with no fairy-tale ending in sight. Citizens are outraged by the proposed law, believing they will lose their money. Some citizens even ditched their national bitcoin wallets. Some of the factors that contributed to this are as follows: The Global Crypto Dip The crypto market has seen its prices drop significantly all over the world. This drop has become steeper in the last few months as several market issues spill over to the digital economy. The conflict between Russia and Ukraine, government regulat...
