Bukele's Bitcoin Strategy Remains 'Net Positive' for El Salvador, Though Adoption Lags Behind

El Salvador’s President Nayib Bukele has defended his controversial Bitcoin gambit in an interview with TIME Magazine, characterizing the Central American nation’s embrace of cryptocurrency as ultimately beneficial despite falling short of adoption expectations. Speaking about the strategy that made El Salvador the world’s first country to recognize Bitcoin as legal tender in September 2021, Bukele acknowledged the mixed results while emphasizing the tangible returns the nation has received from its digital asset positioning.

“Bitcoin hasn’t had the widespread adoption we hoped for,” Bukele stated candidly, adding that while improvements remain possible, the initiative has avoided negative outcomes. The president’s measured assessment reflects a broader reality in El Salvador’s crypto experiment: while citizens haven’t embraced Bitcoin for everyday transactions at the anticipated scale, the country has nonetheless reaped significant diplomatic and economic benefits.

The Strategy’s Mixed Results: Recognition Over Widespread Use

When El Salvador under Bukele’s leadership first adopted Bitcoin as legal tender alongside establishing a government bitcoin purchasing program in 2021, the move represented a bold gamble on cryptocurrency’s potential role in national finance. However, the hoped-for revolution in payment habits hasn’t materialized as quickly or completely as proponents envisioned. Residents continue to rely primarily on the U.S. dollar for transactions, and Bitcoin’s volatility has discouraged mainstream adoption in a country where economic stability is paramount.

Despite these limitations, Bukele maintains that the early positioning decision—what he describes as a “first mover” advantage—has proven strategically sound. As traditional Wall Street institutions now routinely offer Bitcoin investment products and cryptocurrency has become a significant factor in major political conversations, including recent U.S. presidential elections, El Salvador’s early commitment appears increasingly prescient.

Tangible Benefits Outweigh Concerns, Bukele Argues

Rather than measuring success purely by transaction volumes, Bukele points to the concrete returns his country has gained from its Bitcoin-friendly positioning. “It gave us branding, it brought us investments, it brought us tourism,” the president emphasized, countering critics who warned of financial risks, including concerns raised by institutions like the International Monetary Fund.

The warnings about economic destabilization haven’t come to pass, Bukele noted, while the positive spillover effects have been substantial. El Salvador has attracted capital inflows and heightened international visibility as investors and crypto enthusiasts take notice of the nation’s bold experiment. Additionally, the government introduced a citizenship-through-investment program targeting foreign donors, leveraging Bitcoin’s appeal to attract economic participation.

Bukele’s framing—that potential advantages substantially exceed the concerns raised—reflects his consistent messaging throughout his tenure: that forward-thinking digital asset adoption positions smaller nations to benefit from emerging global financial trends rather than remaining passive observers.

A Growing Bitcoin Treasury and Strategic Holdings

Beyond the adoption narrative, El Salvador has accumulated a substantial Bitcoin treasury through direct government purchases and revenue from its citizenship investment program. According to Bukele, the nation holds approximately $400 million worth of BTC “in the public wallet alone,” representing a significant concentration of digital assets relative to the country’s economic size. Reports have suggested El Salvador’s total Bitcoin holdings substantially exceed initial public disclosures, indicating ongoing accumulation efforts.

This treasury strategy mirrors approaches increasingly considered by institutional investors and now even explored by certain jurisdictions, validating Bukele’s early conviction that Bitcoin holdings could serve as meaningful state assets. The government’s willingness to continue purchasing during volatile periods underscores long-term commitment rather than tactical speculation.

Market Reality: Where Bitcoin Stands Today

As of late February 2026, Bitcoin trades around $68,180, having recently approached $70,000 before encountering selling pressure at this technical resistance level. The market remains fragmented between Bitcoin holding ground and altcoins including Ethereum, Solana, and Cardano experiencing renewed investor interest, suggesting cyclical risk appetite shifts within crypto markets.

Analysts caution that macro conditions remain fragile, with stablecoin supply stagnant and potential for sharp liquidations if Bitcoin falls below the $60,000 support level—underscoring continued volatility in the cryptocurrency space that Bukele’s El Salvador continues to navigate.

Looking Forward: The Longer Game

When asked about Bitcoin’s ultimate potential, Bukele offered a measured but optimistic perspective: “I’m not going to say it’s the currency of the future, but there’s a lot of future in that currency.” This formulation captures his pragmatic stance—neither overselling cryptocurrency’s near-term revolutionary potential nor dismissing its longer-term importance.

For El Salvador and Nayib Bukele specifically, the Bitcoin strategy appears less about immediate mainstream adoption and more about positioning the nation as an experimental hub for emerging financial technologies. Whether this early-adopter advantage ultimately proves economically transformational or remains a symbolic footnote in Bitcoin’s history depends heavily on how the cryptocurrency itself evolves over the coming years.