Nayib Bukele, the original Bitcoin President is one of the biggest BTC Maxis in the world. Let's take a deeper dive.
Author: Sahil Thakur
When Nayib Bukele made Bitcoin legal tender in El Salvador in 2021, it sent shockwaves across the financial world. But who is Bukele beyond his Bitcoin advocacy? How did he rise to power, and why has he pushed so aggressively for crypto adoption? While some hail him as a visionary leader, others criticize his authoritarianregime. This article explores Bukele’s journey, his Bitcoin experiment, its impact on El Salvador, and the future of Bitcoin in the country.
Nayib Armando Bukele Ortez was born on July 24, 1981, in San Salvador, El Salvador. His family has Palestinian roots, with his grandfather immigrating from Bethlehem in the early 20th century. Bukele’s father, Armando Bukele Kattán, was a well-known businessman and religious leader, respected for his involvement in media, pharmaceuticals, and various business ventures. Though raised in a Muslim family, Nayib Bukele has described himself as a believer in God but does not publicly affiliate with any particular religion.
From an early age, Bukele showed an interest in entrepreneurship. Instead of pursuing a political career immediately, he focused on business and media, running various companies linked to his family’s conglomerate. By his twenties, he was managing Obermet S.A. de C.V., a local advertising and marketing firm. This experience in branding and communications would later play a crucial role in his political rise.
Bukele’s political career began in 2012, when he ran for mayor of Nuevo Cuscatlán, a small town in the San Salvador department. Representing the left-wing Farabundo Martí National Liberation Front (FMLN)—a former guerrilla group that became a major political party—he won the election and quickly gained attention for his progressive governance. His tenure focused on:
His success in Nuevo Cuscatlán propelled him to a bigger stage. In 2015, he ran for mayor of San Salvador, the capital city, again under the FMLN. He won and implemented several modern urban projects, including:
However, Bukele’s relationship with the FMLN soon soured. By 2017, the party expelled him after internal conflicts and allegations that he had insulted an FMLN leader. Bukele, however, claimed the party had become corrupt and resistant to change.
After breaking with the FMLN, Bukele set his sights on the presidency. In 2018, he founded Nuevas Ideas (New Ideas), a centrist political movement that positioned itself as anti-establishment. However, since Nuevas Ideas was not formally registered at the time, he ran under the banner of the center-right Grand Alliance for National Unity (GANA) in the 2019 presidential election.
His campaign focused on three key promises:
Bukele won the election with 53% of the vote, breaking the traditional two-party dominance in Salvadoran politics. His victory marked a generational shift, as he became the country’s youngest president at age 37.
Bukele presents himself as a pragmatic populist, combining elements of progressivism, conservatism, and strongman leadership. His ideology is difficult to categorize, but it includes:
Despite concerns about his authoritarian approach, Bukele remains extremely popular, with approval ratings consistently above 70%. His ability to maintain support while pursuing controversial policies has made him one of the most influential leaders in Latin America today.
Bukele’s interest in Bitcoin became public in 2021, but hints of his pro-crypto stance emerged earlier. He framed Bitcoin as a way for El Salvador to gain financial sovereignty, attract investment, and help citizens who rely on remittances from abroad.
Nayib Bukele’s decision to make El Salvador the first country in the world to adopt Bitcoin as legal tender was not just a financial experiment—it was a political and economic statement. Several key factors influenced this move:
On September 7, 2021, El Salvador officially made Bitcoin legal tender alongside the U.S. dollar. The move allowed citizens to use BTC for transactions, pay taxes in Bitcoin, and required businesses to accept it (unless they lacked the technology). The government also began purchasing Bitcoin for national reserves, accumulating thousands of BTC over time.
Bukele positioned this as a revolutionary step for financial inclusion, claiming it would lower remittance fees and attract foreign investment. However, the rollout was met with resistance from local businesses and concerns from international organizations like the IMF.
Before Bitcoin adoption, 70% of Salvadorans had no access to traditional banking services. Many relied on cash-based transactions and informal financial networks. The government’s solution was the Chivo Wallet, a state-backed Bitcoin wallet that aimed to provide easy access to digital payments.
However, the implementation faced major issues, including:
As a result, while some Salvadorans embraced Bitcoin for transactions, many cashed out their $30 bonus and never used it again.
One of Bukele’s main arguments for Bitcoin adoption was to reduce the cost of remittances, which account for over 20% of El Salvador’s GDP. Traditionally, remittance services like Western Union and MoneyGram charge high fees, often 5-10% per transaction.
Bitcoin’s low-cost, borderless transactions were supposed to revolutionize remittances, but uptake has been slower than expected. Reasons include:
A 2022 study showed that less than 2% of remittances were being sent via Bitcoin, suggesting that it has yet to replace traditional methods in a significant way.
Under the Bitcoin Law, businesses are required to accept Bitcoin if they have the technological capability. However, real-world adoption varies:
According to a 2023 survey, only about 20% of businesses reported using Bitcoin regularly, with most preferring USD. While the law mandates Bitcoin acceptance, enforcement is lax, and many businesses quietly refuse to accept it.
For businesses, Bitcoin’s high volatility is a double-edged sword:
To avoid losses, many businesses convert BTC to USD immediately. However, this defeats the purpose of Bitcoin adoption, as businesses do not actually use Bitcoin as a currency but rather as a conversion tool.
Despite skepticism among traditional businesses, some entrepreneurs and startups have embraced Bitcoin:
However, the overall business adoption rate remains low, with most companies preferring to operate in USD.
One of the biggest unexpected benefits of Bitcoin adoption has been a boom in tourism. In 2022, tourism increased by 30%, with Bitcoin enthusiasts from around the world flocking to El Salvador.
Key attractions include:
Tourists visiting El Salvador for Bitcoin-related reasons helped offset economic struggles caused by the initial skepticism among locals.
While Bitcoin adoption faced internal resistance, it transformed El Salvador’s global image:
Despite some success stories, Bitcoin’s adoption in El Salvador has not been smooth. Key challenges include:
El Salvador’s relationship with the IMF has been complicated since adopting Bitcoin. The IMF repeatedly warned the country about risks associated with Bitcoin’s volatility, financial stability, and money laundering concerns.
In early 2025, El Salvador secured a $1.4 billion IMF loan, but it came with conditions. The government agreed to scale back its Bitcoin policies, including:
Despite these restrictions, Bukele made it clear that his Bitcoin strategy remains intact. He dismissed the idea that El Salvador would stop accumulating Bitcoin, responding to IMF critics with the phrase:
“No, it’s not stopping… and it won’t stop in the future. Proof of work > proof of whining.”
Src: Arkham
With Bukele’s re-election and ongoing Bitcoin accumulation, El Salvador remains a global experiment in state-level Bitcoin adoption. The country’s strategy has faced criticism, but it has also inspired other nations to consider Bitcoin reserves.
Looking ahead, Bukele may push for:
While it remains uncertain whether El Salvador’s Bitcoin bet will pay off long-term, Bukele has shown he is willing to take risks to position his country as a leader in the crypto space.
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