Beautiful Virgin Islands

Monday, Apr 20, 2026

As El Salvador Makes Cryptocurrency Legal Tender is It the Beginning of the End for Dollar Hegemony?

As El Salvador Makes Cryptocurrency Legal Tender is It the Beginning of the End for Dollar Hegemony?

The idea of cryptocurrency was first conceived in the 1980s but it was not until 2009 that the first open-sourced software, Bitcoin, was released. There are now dozens of blockchains but they have until not been regarded as legal tender.

El Salvador will make history on Tuesday, 7 September, when it becomes the first country in the world where cryptocurrency is officially legal tender and can be used to buy a house or a car or even to pay your taxes.

Supporters of cryptocurrency hope it could mark the beginning of the end of the "dollar hegemony."

In 2019, the dollar was responsible for 88 percent of global trade but cryptocurrencies such as Bitcoin could offer an alternative, especially for smaller countries who are prone to economic bullying.

A poll by the Central American University, published on Thursday 2 September, found two-thirds of Salvadoreans were opposed to allowing cryptocurrencies to be legal tender, although it appeared to be driven by ignorance.


​Of 1,281 people surveyed nine out of 10 people did not have a clear understanding of how Bitcoin worked and 70 percent thought the government should repeal the law, passed in June, allowing it to be legal tender.

El Salvador’s President Nayib Bukele, who proposed the idea, believes cryptocurrency can help boost jobs and economic development by making the country less reliant on US dollars.

Unemployment is around seven percent in El Salvador but the majority of the population live on low wages and grinding poverty, as well as high levels of crime, have persuaded tens of thousands to head north to the “promised land” of the United States.

The sun rises as asylum-seeking migrants' families from Honduras and El Salvador walk towards the border wall after crossing the Rio Grande river into the United States from Mexico on a raft, in Penitas, Texas, U.S., March 26, 2021


There are 1.5 million Salvadoreans in the US, compared to six million in El Salvador itself, and another 40,000 live in Honduras, Guatemala or Mexico, often having abandoned the migrant journey north.

Seven out of 10 people in El Salvador do not have bank accounts and President Bukele believes cryptocurrency will make it easier for migrants in the US to send remittances back to their family without having to pay the charges demanded by banks and firms like Western Union.

Remittances - around US$4 billion a year - makes up around a fifth of the country's GDP.


Mr Bukele, a former businessman of Palestinian origin, has portrayed the cryptocurrency move as a way for El Salvador to dig itself out of its economic mire.

"This will improve lives and the future of millions," Mr Bukele told a Bitcoin conference in Florida in June.

President Nayib Bukele holds his ballots as he prepares to vote in local and legislative elections, at a polling station in San Salvador, El Salvador, Sunday, Feb. 28, 2021


But the UCA survey found most Salvadoreans think foreign investors and the country’s wealthy elite will be the only beneficiaries.

"The dean of UCA, Andreu Oliva, said: "What we can see in this survey, in addition to this broad rejection of the implementation of Bitcoin as legal tender, is that for the first time we found a significant disagreement between the population and decisions being made by the Legislative Assembly and the president.There is a lot of concern about the possible negative effects of using Bitcoin."


But if cryptocurrency works in El Salvador, and if it boosts the economy and draws in inward investment, then it could well be copied by other impoverished states like Honduras, Haiti, Zimbabwe, Liberia and Sierra Leone.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
×