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Despite opposition from various international agencies, El Salvador’s Bitcoin Law has boosted the country’s tourism economy, which increased by 30% during the global pandemic.

The Bitcoin Law has boosted tourism

El Salvador’s contentious Bitcoin Law has been a boon to the tourism industry in the Central American country. According to Morena Valdez, Minister of Tourism, since Bitcoin was legalized on September 7, 2021, the sector has grown by 30% in the fourth quarter of 2021. Furthermore, the actual number of tourists to the country, nearly 1.4 million, was nearly 300,000, higher than expected.

The figures were initially brought to the attention of the authorities by local media reports on February 21. According to the research, tourism is also one of the pillars of the country’s economic plan. This is a significant development for the country, which has been mired in controversy due to the Bitcoin Law.

El Salvador is attracting foreign investors

The government of El Salvador’s move to legalize Bitcoin drew a lot of criticism. Several citizens and Salvadorean organizations, in addition to foreign agencies, have been protesting the bill until recently. However, there have been no reports of protests in the months since the rule went into effect. The tourism sector’s success could be a sign of even better things to come for the country, daring to break free from the US dollar’s stranglehold. The government may even grant foreign investors citizenship. Industry professionals, such as Layah Heilpern, author of ‘Undressing Bitcoin,’ have praised the authorities and shown interest in visiting the country shortly.

Overcoming global institutions’ skepticism

Since the beginning, the country’s president, Nayib Bukele, has been a prominent advocate of Bitcoin and the Bitcoin Law. His optimistic adoption of cryptocurrency to completely transform the remittance payments process has been a divisive decision that has stirred global debate. The International Monetary Fund (IMF) has been a vocal opponent of the Bitcoin Law, warning the country of using BTC as legal cash and even demanding that the law be reconsidered. Furthermore, the country’s credit rating was reduced from B- to CCC by Fitch Ratings, a US-based credit rating firm.

President Bukele, on the other hand, has never wavered in his support for Bitcoin, despite strong opposition from established financial institutions. He recently retorted to a group of US Senators who expressed their displeasure with the Bitcoin regulation.

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