How Bitcoin Lover Prez Nayib Bukele Crushed 70,000 Gangsters and Rose El Salvador GDP by 3.5%

As a seasoned crypto investor who’s been through various market cycles and geopolitical events, I must say that President Nayib Bukele of El Salvador has proven to be quite an enigma. His unconventional yet pragmatic approach to governance, especially his handling of organized crime and the promotion of cryptocurrencies, is truly inspiring.


In simple terms, President Nayib Bukele of El Salvador is garnering international attention for his unique methods in governing, particularly in dealing with organized crime and stimulating the nation’s economy through cryptocurrencies. Within just five years since he took office at age 43, Bukele has successfully reduced the influence of drug cartels and criminal gangs within his country, as well as advocating for Bitcoin as a potential alternative economic system.

In his latest speech, Bukele acknowledged that his tough approach towards criminals had been cautioned as potentially harmful for the nation’s economy by his advisors. He further stated that the notion that criminals need to be considered as breadwinners for their families lacks practicality and asserted that the most effective solution is to isolate them from society.

— Nayib Bukele (@nayibbukele) October 16, 2024

As a crypto investor, I’ve noticed El Salvador’s President Bukele shedding light on his crime-fighting strategy, revealing an unexpected part that digital currencies play in bolstering the economy. He elaborated that with approximately 70,000 gang members engaged in criminal activities, their ill-gotten gains often supported households by covering essential expenses such as food, diapers, rent, and even internet bills.

Nayib Bukele stated that he had been informed that a sudden elimination of the underground economy would leave the nation’s formal economy insufficient to quickly make up for the deficit, potentially causing an economic downturn or collapse.

bukele, nonetheless, dismissed these theories, stating that tolerating ongoing crime would equate to losing the “battle of incentives.” He demonstrated the challenges a young Salvadoran encounters – deciding between low-paying, laborious jobs like selling tomatoes at the market or opting for quick cash by joining a gang. If this inequality isn’t addressed, it’s likely that young people will be drawn towards criminal activities.

Additionally, President Bukele stated that his strategy was to intensively address gang members not as a form of retribution, but to expel them from society and diminish their power. He argued that once gangs were eradicated, youth would no longer be subjected to extortion and could work without the fear of losing their income. In essence, he likened this process to cancer treatment—though painful, it’s crucial for the nation’s well-being.

By making that significant move, Bukele acknowledged that “We might bear an economic cost, and these estimations are not solely from our financial advisors, but stem from deliberations within our national security team.

Despite predictions of economic turmoil, Bukele’s gamble paid off.

He added, “Our GDP would fall by 10% to eliminate crime. But our GDP didn’t fall by 10%, it grew by 3.5%.” And the president credits crypto for much of this success.

Embracing Bitcoin led to increased investments, stimulated tourism, and provided chances for financial inclusion among those without traditional banking services in the country. As crime decreased and cryptocurrency propelled economic development, El Salvador is now a compelling example demonstrating how technology and law enforcement reforms can complement each other effectively.

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2024-10-16 10:44