TO WHAT EXTENT HAS THE ADOPTION OF BITCOIN AS LEGAL TENDER IN EL SALVADOR INFLUENCED FINANCIAL INCLUSION AMONG ITS CITIZENS?

This research paper explores the implications of adopting Bitcoin as legal tender in El Salvador on financial inclusion for El Salvador's national stakeholders. El Salvador's decision to officially accept Bitcoin as legal tender in September 2021 has raised intriguing perspectives on the financial inclusiveness and reliability of this cryptocurrency for its citizens and government. The study highlights the potential benefits of enhancing financial inclusion by providing an alternative means of accessing financial services for the unbanked and underbanked populations. However, it also addresses concerns about the environmental impact of Bitcoin mining. President Nayib Bukele's strategies, including using geothermal energy for Bitcoin mining and offering tech tax incentives, are pivotal to this adoption. The research provides a comprehensive view of the potential benefits and hurdles of El Salvador's Bitcoin integration, offering insights for other countries considering similar financial shifts.