What happened to El Salvador after it canceled Bitcoin as legal tender?

Author | Efrat Fenigson

Compiled by AididiaoJP, Foresight News

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In the past week, I visited El Salvador for the third time in a year, and it is clear that the country is undergoing a real transformation, not just theoretical talk, not superficial gestures, but a fundamental change in the way people live, think, build, and look toward the future. The moment that brought all of this together occurred at the private dinner with President Nayib Bukele, which I was fortunate to attend over the weekend.

I have been following his work for several years. In my podcast, I interviewed nine Salvadorans and expatriates living locally, as well as business people, builders, community organizers, and ordinary citizens. A year ago, I tweeted that my dream is to one day meet him.

What I didn't expect was that when the dinner ended, I approached him for a photo, and just said “Hello, I'm Efrat”. Before I could introduce myself, he immediately replied, “I know you, I've seen your podcast.”

That moment is unforgettable for a lifetime because it made me feel that all the experiences of this week are closely connected to the grand picture unfolding in this country.

The Triple Perspective of the Nation

Three events were held this week, “Regaining Health,” “Adopting Bitcoin,” and “Historic Bitcoin,” each revealing different aspects of El Salvador's development trajectory.

The “Health Reclamation Seminar” led by Salvadoran doctor Kenneth Fernandez-Taylor explored the intersection of a healthy body and sound money. Some discussions focused on how unsound money and time preferences for long working hours shape people's stress, uncertainty, and long-term health. In a country that has regained public safety and is committed to regaining economic freedom, the connection between health and money feels so intuitive and not abstract at all. Four years ago, when the world was gradually descending into madness during the “apocalyptic pandemic,” such a seminar gathering truth-seeking, freedom-loving doctors, healers, and experts seemed like a distant dream. But in El Salvador, dreams are becoming a reality.

At the “Adopt Bitcoin” conference, I saw the foundational engine of this transformation. Circular economies like El Salvador's “Bitcoin Beach,” “Berlin,” and “MurphLife” vividly demonstrate what happens when people earn, spend, and save in “satoshis.” Communities like “Bitcoin Babies,” “Orange Women,” or Argentina's “La Crypta” emphasize that Bitcoin belongs to everyone. Merchants naturally accept Bitcoin. Children grow up in its atmosphere. “My First Bitcoin” announced its new chapter: providing educational materials, frameworks, and guidance for over 70 projects across more than 40 countries, supporting community-led Bitcoin education. The startup exhibition area was filled with founders who have established offices here and started their ventures from El Salvador. I repeatedly heard a common theme, very simple: here, you can get things done.

Michael Holloman Jr.

The historic moment of Bitcoin and El Salvador

But the highlight of this week, which also set the tone for everything, is undoubtedly the “Historic Bitcoin” conference. This is the world's first government-led Bitcoin conference, organized by the Bitcoin office initiated by the Salvadoran government (led by Stacy Herbert and her team), and held at the National Palace and the National Theatre. These two locations are highly symbolic landmarks, and choosing to hold the Bitcoin conference in such solemn places carries more significance than any words can express. The hall gathered ministers, entrepreneurs, and international speakers; voices from the United States, Europe, Latin America, and Africa. Guests received a booklet titled “El Salvador, the Bitcoin Nation,” with a cover featuring President Bukele's photo, which clearly indicates that Bitcoin is a national strategy here.

Everett Fenigsen

In the outside Gerardo Barrios Square, the meeting extended into the public space; the meeting content was accompanied by Spanish translation, live streaming to local families, students, and seniors. Shops and stalls accepted “Sonic” payments, and Bitcoin seemed to have returned to its natural habitat, integrating into the city's daily life, with the public also becoming a part of the meeting.

Multiple announcements highlight the country's direction: The Ministry of Agriculture signed a cooperation agreement with “The Beef Initiative” to strengthen local beef production. Steak 'n Shake announced that El Salvador will be its first stop in entering Latin America, and it will accept Bitcoin from the very first day of operation.

The government has announced a plan to procure NVIDIA B300 chips, which, with the support of Hydra Host, have sufficient computing power to locally train and run advanced AI models. This marks a step towards sovereign computing infrastructure, reducing dependence on large tech company data centers and laying the foundation for El Salvador to build its own AI capabilities domestically. Mempool, after securing a recent $17 million investment, announced it will register in El Salvador. With the support of Lina Seche and the Bitcoin office, as part of the “Daily Two Schools” program for national large-scale modernization and expansion of educational infrastructure, 500 classrooms will be renovated for Bitcoin and financial education. These initiatives collectively outline a coherent picture: a nation simultaneously building its future on multiple levels.

Ricardo Salinas's presence added a remarkable moment to the “Historic Bitcoin” conference. In his speech, he stated, “El Salvador stands on the right side of history,” and particularly pointed out the significant improvement in public safety: “(It's) safer here than in Japan. I really wish my country could be like this.” This sentiment resonated with many visitors this week, as one of Latin America's most influential entrepreneurs expressed it.

Efrat Fenigun

Presidential banquet

However, the clearest window to glimpse that future was at that dinner.

El Salvador Bitcoin Office

Buckle is completely different from his comic image internationally. He is sharp-minded, quick to respond, witty in speech, and has a thorough understanding of Bitcoin culture. As soon as he sat down, he joked, “Guys, it's over, Bitcoin is done,” simply because the price had dropped below $100,000 that day. He is not the type of politician who deliberately tries to appear relatable or recite from a script; he truly knows the field and genuinely understands Bitcoin.

When the topic turned to Bitcoin's long-term trajectory, he said something that stuck with me: “Bitcoin should become a currency.”

It is not an investment, not an asset class, but a currency. He clearly sees the ultimate state and understands the path to get there. Those communities that use Bitcoin daily are the backbone of transforming it from an idea into a functional currency system.

His keen intelligence complements his analytical insights. When Giacomo Zucco, the director of Plan B Network, was introduced as an “anarcho-capitalist,” Bookler immediately responded, “That's fine, I'm friends with Milei too,” and continued to jokingly refer to him as “that anarchist” throughout the dinner. After Wiz gifted him a samurai sword, Giacomo presented a bottle of rum named “Dictator” (lightly poking fun at the media narrative), someone reminded that Bookler doesn't drink. He immediately replied, “That's fine, I don't often sword dance either.”

At the end of the banquet, Giacomo thanked him, and Buckler smiled and said a phrase that summarizes his governing philosophy: “I apologize for running a government, but it is a very small government.”

Happy Whistleblower

I have visited many countries that are sliding into darker trajectories: tighter surveillance, greater centralization, more control, and more violence. Yet, what is happening in El Salvador is exactly the opposite: safe and unoppressive, structured yet not stifling, free yet coexist with responsibility. After decades of violence from gangs, people in El Salvador feel liberated. You can see it on their faces: they are friendly, relaxed, and full of gratitude. On my last trip, I met a 75-year-old man who rode his bicycle through El Sonté at dawn, whistling as he went. “When do people whistle?” I asked myself. “Happy people whistle. People only whistle when they feel safe.” That simple moment became a silent metaphor for my feelings about this place.

Yes, this country still needs to deal with global institutions like the International Monetary Fund. The recent decision to abolish Bitcoin's status as legal tender is indeed regrettable, but after peering beneath the surface, it feels like taking one step back to move four steps forward. Admittedly, progress is not always smooth. But the direction is undeniable: moving towards monetary sovereignty, digital sovereignty, educational sovereignty, and civic sovereignty, with all forces pushing in the same direction.

This week, I was able to glimpse a country that is reshaping itself.

As the majority of countries in the world struggle with economic, security, and fragile social structures under the influence of the global agenda, El Salvador is changing its own reality and stepping into a new timeline.

Meeting with Booker feels less like meeting a president.

It feels more like meeting an architect who is determined to liberate his country and pave the way for it.