Back in 2021, El Salvador took the first step into making Bitcoin legal tender. It defied the establishment by proving BTC can be used as an alternative to Fiat.
If this country had proven this, the experiment would not have ended.
Set ourselves forward 4 years later, and now El Salvador is regretting its decision. It made a deal with the IMF, in exchange of limiting its involvement with the world's beloved cryptocurrency. I guess all good things come to an end.
I don't think the country regrets it and it looks more like the IMF left it no choice.
I wonder what could've been the culprit of Bitcoin's limited adoption within the country?
Low standard of living in this country. What kind of adoption of bitcoin can talk about if the country has a high level of poverty, low literacy, and the economy is in poor condition. Without the necessary social and economic "base", the use of bitcoin is practically impossible.
Was it bad planning/execution?
This experiment was doomed from the start.
Wrong time, wrong place.What if El Salvador rejected the IMF's demands?
Then the country would have had big problems.
Would've it survived with Bitcoin as its sole currency?
Of course not.
I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
To pay off the debt, it would be necessary to sell bitcoin. Holding doesn't solve any problems.
It is a mistaken opinion that bitcoin will "magically" transform any underdeveloped country into a developed one. Exactly the same as the opinion of people that bitcoin will solve all their problems and certainly make them rich.