Diplomatic World 67

H.E. FÉLIX ULLOA
VICE-PRESIDENT OF EL SALVADOR
RECENTLY, EL SALVADOR HAS ATTRACTED MUCH
INTERNATIONAL ATTENTION BY TAKING A VERY
INNOVATIVE STEP – THAT IS MAKING BITCOIN
A LEGAL CURRENCY. CAN YOU TELL US MORE
ABOUT THE REASONS BEHIND THIS DECISION
AND ABOUT ITS IMPACT SO FAR? IN WHAT WAY
WILL IT CONTRIBUTE TO THE COUNTRY’S
ECONOMIC DEVELOPMENT?
As a matter of fact, it was during an international conference in
Florida (the Bitcoin conference in Wynwood, held in June 2021)
that President Bukele announced his willingness to adopt the
Bitcoin as a legal currency in El Salvador.
After this, President started working with experts in a way that
made the country ready to adopt Bitcoin, which is one among
many cryptocurrencies. In doing so, President Bukele prepared
the legal framework in order to adopt legally the Bitcoin, which
was enacted on September 7, 2021 by Congress.
But before that, he had announced how the situation would be
managed. There were some pilot experiments in touristic spots
where tourists could use Bitcoin as a legal tender. An international
surf championship was held in May that allows to bring surfers
(male and female) from 52 countries around the world. Most of
them were using bitcoin in that specific area. The ATM machines
were Bitcoin-ready.
And this experience was the pilot programme to extend it all
over the country afterwards. Now we have these Bitcoin-ATM
machines across the country and in our consulates in the United
States. Our President wanted to encourage our diaspora to use
them, because they represent a faster and more secure system
to send remittances to their families in El Salvador; in addition to
the fact that they get rid of expensive commissions.
Of course some companies like Western Union were upset;
Western Union makes USD 400 million per year in the fees they
charge to the people who use their services to send money.
There were doubts of course. Some voices were worried the
adoption of Bitcoin could be used for money laundering, and
there were similar “urban legends”. We have been working hard
to diminish the fears of the population.
When the law was enacted and all the ATM machines were in
place, President Bukele attracted users by giving everyone who
signed up for the government’s app a USD 30 bonus in Bitcoin.
Furthermore, 4,000 young people were trained to travel across
the country and help elderly people or those living in rural areas.
Today, there are more than 3 million Salvadoreans with Bitcoin
accounts (more than double than the number of users with traditional
bank accounts).
Now you can go to the supermarket, the drug-store, to the gas
station, and pay with bitcoin. We have inaugurated a new airline
H.E. Félix Ulloa Vice-President of El Salvador
(Volaris) which also accepts bitcoin payments. We can see that
Bitcoin is becoming part of a normal life and widely accepted by
everybody.
We are seen as a model worldwide. People from all over the
world have expressed an interest in coming to El Salvador to
study our experience.
For those who were so sceptical, today we realise that Bitcoin is
skyrocketing. We first bought 400 bitcoins – worth an estimated
USD 21 million at the time of purchase – then another 300.
In the end, our final goal is none other than to improve economic
processes, facilitate the way to do conduct business and raise
the living standards of the population.
EL SALVADOR IS PAYING GREAT ATTENTION TO
THE 2030 SUSTAINABLE DEVELOPMENT AGEN-
DA, HAVING RECENTLY CREATED THE NATIONAL
COUNCIL FOR SUSTAINABLE DEVELOPMENT
(CONSEJO NACIONAL DE DESARROLLO SOSTENI-
BLE). HOW IS EL SALVADOR INCORPORATING AND
MAINSTREAMING THE 2030 SUSTAINABLE DEVEL-
OPMENT GOALS INTO ITS NATIONAL STRATEGIES
AND POLICIES? IS EL SALVADOR ON TRACK OF
MEETING THESE GOALS?
I am the Chairman of the Board of the National Council for
Sustainable Development, which is in charge of tracking the
17 SDGs.
H.E. Félix Ulloa Vice-President of El Salvador
For instance, let us consider SDG 2: Zero Hunger. We are reviewing
our agricultural policy. Because in the past, the previous
government abandoned all activities in rural areas.
Now we are going back to develop the coffee plantations, for
example. In May, we approved with the new national assembly
a trust fund for USD 1.2 billion – 50 percent of that fund will
be used to recover 50,000 acres of coffee which will allow
El Salvador to be a big exporter. In the past, we were one of
the top five exporters worldwide – this was before the Civil War.
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