Arab Press

بالشعب و للشعب
Saturday, May 30, 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

Arab Press
0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×