Taxi Driver
SAN SALVADOR: Napoleon Osorio, a 39-year-old taxi driver from El Salvador, is making headlines as the first individual in his profession to accept payment in Bitcoin.
El Salvador, known for its pioneering stance on cryptocurrency, became the first country in the world to recognize Bitcoin as legal tender, a decision that has significantly impacted Osorio’s life.
Osorio, who once faced unemployment, credits the bold decision by President Nayib Bukele to adopt Bitcoin three years ago for transforming his fortunes. “Before I was unemployed […] and now I have my own business,” Osorio said, reflecting on his remarkable turnaround.
He utilizes a digital app to facilitate Bitcoin payments for his taxi services and has expanded his entrepreneurial activities to include a car rental business. His venture, named Bit-Driver, now employs 21 drivers and has allowed him to purchase four rental vehicles, thanks to the rise in Bitcoin’s value.
The adoption of Bitcoin by the Salvadoran government aimed to rejuvenate the country’s dollarized economy, which heavily relies on remittances.
President Bukele invested hundreds of millions of taxpayer dollars into Bitcoin, despite warnings from global financial institutions about the cryptocurrency’s inherent volatility. This move was part of a broader strategy to stimulate economic growth and increase financial inclusion.
Osorio attributes his success to the encouragement he received from John Dennehy, the U.S. founder of the NGO “My First Bitcoin.” Dennehy’s support played a pivotal role in Osorio’s decision to embrace Bitcoin for transactions.
This decision has not only improved his financial situation but has also eased the burden of providing for his two teenage children, including their education expenses.
Despite Osorio’s success, Bitcoin’s adoption in El Salvador remains limited. A recent study by the University Institute for Public Opinion revealed that 88% of Salvadorans have yet to use Bitcoin, and only 1% of remittances in 2023 were made using cryptocurrencies.
The country’s reliance on remittances, which account for a quarter of its GDP, underscores the limited penetration of Bitcoin in daily financial transactions.
In August, President Bukele acknowledged the mixed results of the Bitcoin initiative. While he highlighted that Bitcoin payments are accepted at various businesses, including McDonald’s and supermarkets, he conceded that the cryptocurrency had not achieved the widespread adoption initially hoped for.
Bukele noted that the use of Bitcoin remains voluntary, and those who have opted to use it have benefited from its appreciation.
Additionally, Bukele revealed that the government holds approximately $400 million in Bitcoin, securely stored in a public “cold storage wallet” to mitigate risks associated with online storage.
This financial strategy underscores the government’s commitment to integrating Bitcoin into the national economy, even as its broader adoption faces challenges.
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