Harvard study finds El Salvador boosts economy with Bitcoin

A Harvard University study has highlighted El Salvador’s transformation from being labeled the “murder capital of the world” to a “Bitcoin capital.” 

The report, titled El Salvador – Surfing from Red Ocean to Blue, examines how the country has redefined its global reputation under President Nayib Bukele’s administration. 

The study was first published in the Harvard Economic Catalog in March 2024 and gained wider attention after being publicised by Bukele. 

Authored by professors Chan Kim and Renée Mauborgne, the study delves into Bukele’s use of the “blue ocean” strategy, which focuses on creating new opportunities rather than competing in existing markets. 

The report indicates that the adoption of Bitcoin (CRYPTO:BTC) as legal tender in 2021 has been a key element in Bukele’s broader strategy for economic development and positioning El Salvador on the global stage. 

According to the study, the introduction of Bitcoin has spurred growth in tourism, foreign investments, and GDP. 

The country has also seen improved income levels and quality of life for its citizens. 

There are even signs of reverse migration, with Salvadorans returning to the country due to emerging opportunities. 

Stacy Herbert, Director of the National Bitcoin Office of El Salvador, quoted a section of the study: “El Salvador’s strategic transformation is to move from a country without technology to a Bitcoin pioneer.” 

Herbert noted the country’s shift from limited technological infrastructure to becoming a notable player in the crypto space. 

The report also suggests that El Salvador’s strategic transformation could serve as a model for other nations facing economic difficulties. 

It emphasises how focused actions and well-implemented policies can help countries navigate challenges and achieve growth. 

As of 2024, President Bukele’s administration continues to emphasise Bitcoin as a cornerstone of its economic plans. 

Douglas Rodríguez, President of El Salvador’s Central Reserve Bank, reinforced this approach, indicating that ongoing economic improvements are supported by public safety measures, international events, and initiatives to boost private investment and tourism, all of which prominently involve Bitcoin.

At the time of writing, the Bitcoin price was $67,537.24.