Vera Bergengruen of TIME Magazine has raised concerns about the real reasons behind El Salvador’s decision to accept Bitcoin as money. According to Bergengruen, President Nayib Bukele’s choice wasn’t based on economic reform but on a well-thought-out plan to change how people around the world see El Salvador.
Bergengruen recently talked to Crooked Media’s Pod Save the World and said that Bukele’s advisors called the Bitcoin move a “complete PR move” and a “great rebranding” effort. People say that Bukele cares more about how she looks than what she does. She used to work in public relations before she got into politics. Bergengruen says that when El Salvador adopted Bitcoin, it wasn’t so much to change the business as it was to create a new story for the country.
After it officially started in September 2021, the Bitcoin project got a lot of attention around the world. Bergengruen, on the other hand, says that many people thought the rollout was shallow and that it had a lot of problems. By giving people a $30 bonus for using the Chivo wallet, the government tried to encourage more people to use it, but technology problems made it less successful.
Even with these problems, Bukele is still well-liked in El Salvador. Many Salvadorans who have lived through years of violence and instability agree with his tough stand against crime and corruption. Bukele’s way of running the government, which includes being involved on social media and talking to people directly, has helped him stay popular.
But Bergengruen raises worries about Bukele’s authoritarian traits and the recent steps he has taken to retain power, like getting rid of important judges. People who are against these actions are worried that they weaken political structures and could hurt the country’s democratic processes.
In the bigger picture of Latin American politics, Bukele’s way of doing things is similar to the rise of other non-traditional leaders, such as Javier Milei of Argentina, who wants big changes to the economy. Voters who are fed up with the way politics usually work find both leaders appealing and see them as possible partners in changing the way things work in the area.
Bergengruen’s ideas give us a fresh look at why El Salvador adopted Bitcoin, pointing out that it might have been more about managing their public image than actually making the economy better.
