La Libertad: From Slums to Skyscrapers

From the month of November until just before Christmas, this’ll be my second visit to El Salvador. On this second occasion, I’ve come with a new set of lenses, rather than the “everything was amazing & perfect” hype that happens on a first-time visit to somewhere new. But with my trip coming to its conclusion, round two has been enjoyable & a deeper learning experience than the first. Let me explain…

With the Salvadorians, it is like you can truly see & feel their newfound freedom. A freedom that was previously stripped thanks to war, gangs, & death. In 2015 & 2016, El Salvador was considered the “murder capital of the world” as they amassed an insanely high homicide rate per capita ratio of 103 homicides per 100,000 people. This small & stunning country was ravaged by violence & corruption from the top-down, where things were so bad, gangs controlled politicians & effectively controlling government & civil services.

The mother & father that I’ve had the pleasure of making homemade pupusas with, have eight children, but a victim of gang violence. They had to endure bearing witness to watching several children get murdered on her front door step. And rumor has it, that it was their neighbors’ (literally across from their home) children. Four family members, all involved in gangs. Later during my stay, I learned more about this town, Lourdes. A town that many locals referred to as “a red zone," which is basically a no-go zone. A place where if you go in, you may not come back out alive type of place. But when looking at a map, it makes sense that gangs concentrated there. Lourdes is smack dab in the middle of two of El Salvador’s most active cities, San Salvador & Santa Ana. Another popular gang concentration was at the beach, a 30 to 40 mintute drive from San Salvador, but this map excludes them (see map below):

Another local that I had met at a bar had stated that, before President Nayib Bukele cleaned up the streets from gang activity, the only window of opportunity to enjoy a bar at the beach and/or most other activities that involved the external world was to only be enjoyed from the hours between 10h00 to 14h00 (four hours only). For the remaining hours, you are inside your home, like prisoners.

As for businesses, instead of reinvesting profits from business activity back into their businesses, they had to pay a tax to the gang members that controlled the country. The gangs that were most notorious within El Salvador were: MS-13 & Barrio 18. Day In & Day Out of witnessing violence & destruction everywhere & at anytime, takes a toll on people. So much of a toll that many stated they lost hope during this time of chaos, & that it was a “survival of the fittest” scenario. A game of just making it to see tomorrow, whatever it may bring. Who would want to come to the “murder capital of the world” for tourism? Yeah, probably not many people would like to visit a place with that nickname (see figure below):

Due to lack of tourism & extortion by gangs, these two characteristics probably have much to do with today’s wages being at criminally low levels. Wages that range somewhere between $2 & $4 (roughly $300/month), unless you are highly skilled making roughly $2000/month. It should also be noted that here in El Salvador the function on two currencies as legal tender, The United States Dollar ($USD)(2001) & Bitcoin ($BTC)(2021). But as of today, many families struggle with high levels of debt.

As a someone who values Bitcoin, this is a “Bitcoiners” playground. A playground that you understand when spending time here. It is nearly impossible to not see the potential of this place — from volcanoes to beaches. And quite frankly, if you cannot see this small country’s potential, you’re not thinking big enough & your eyes are not open wide enough. When visiting, it should be made a thing, to turn your fiat into Bitcoin & spend some sats out into the wild, it’s such a powerful experience!

However, this stuff takes patience. Witnessing a nation go through major transformation, while trying to navigate new technologies, to maybe one day operate monogamously on a Bitcoin Standard is not easy. It going on nearly half a decade since Bitcoin became legal tender in this country. Yet, the locals of El Salvador are still very much against it. I’ve received a lot of “I don’t trust it” comments and/or the learning stages of Bitcoin is hard for them to comprehend. It is sad, as time plays a critical factor when it comes to Bitcoin adoption, but over the years I’ve learned that you have to meet people where they are.

Trust is hard to gain with skeptics, especially when El Salvador forced the Bitcoin Law through, making it the first nation to make Bitcoin transactions legal & equal to the dollar anywhere in the world. But to make any actionable difference, it must be hammered home the importance of helping to ease concerns of the populace. One way the government managed to do this, was by giving everyone $30 & the autonomy of choice. The locals had one of two options, to decide whether To Bitcoin (transfer $30 into Bitcoin) or Not to Bitcoin (keep the money in dollars). The wise who can harness discipline & self-control would’ve taken Bitcoin. Yet, many locals, still today, don’t accept Bitcoin, and prefer cash.

This is the opportunity. The opportunity for Bitcoiners to “orange-pill” as many locals on visits as possible. I have found that the most effective way to get people to reach their “ah-ha” moment is to simply show them. To make them, right then & there; 1) Download a wallet; 2) Write down their seed phrase; 3) Delete their wallet & recover their newly created wallet; 4) Send them sats for their time; 5) Stress to the max to keep their words safe & to not lose them. If you leave it up to people to do the heavy lifting themselves, it’ll never happen. Bitcoin requires teamwork. During my orange-pilling excursions, I’ve found that many people compare the process to what they know & understand. Therefore, it should be repeated, to meet them where they are, not where you want them to be.

Bitcoin is like a credit card or banks, but no waiting days for the money to finalize & little to zero fees to make simple transactions. Around 20% of El Salvador’s GDP goes to remittances. Once the country is on a Bitcoin Standard, if ever, then adios, Western Union. Many locals here can grasp that way of thinking. They are entrepreneurial & have family abroad that escaped violence, sending them money ever so often. When they can grasp the incentive, the window opens. This is the Bitcoin playground that I’ve chosen…to help accelerate the development the Bitcoin infrastructure within this country, by helping the locals “get it.” This is a country that is starving for change & can be seen that in President Bukele’s election approval ratings (above 90%) as a nation (see figure(s) below)…

According to ScienceDirect, “A 'Developed Country' is defined as a nation that has achieved a high level of economic prosperity, technological advancement, and social well-being, often characterized by factors such as high GDP, advanced infrastructure, and access to education and healthcare” (Chepaltis, 2003). I summarize this into four categories: 1) Political Stability, Transparency & Strong Institutions; 2) A Well-Educated & Healthy Population; 3) A Strong Economy; & 4) Rule of Law & Property Rights. Here is a breakdown…

1) Political Stability, Transparency, & Strong Institutions:

As we never should trust any politician, President Bukele is doing a good job leading his nation & being an example for others whom find themselves in a similar position. But this shouldn’t really need to be said, because in democratic nations, the government works for the people & never the other way around. Somehow, this critical point seems to have gotten lost along the way. But it should never be forgotten, that when a government works for their constituents, freedom, liberty & justice prevail. They prevail only when they work in tandem to improve upon society. If the people are working for the government, society merges into a system similar to slavery.

Nayib Bukele is in his second 5-year term & has near-total control of state institutions. In order to have the chance of a second 5-year term, President Bukele had to bend the rules for him to remain in power, if the people decided to vote him in as President again. With a 90% approval rating, and much work to still be accomplished, the majority of the locals do not seem to mind such constitutional changes because all they see is progress. But underneath the surface, there are many attack vectors still. According to Reuters, “The president's highly publicized plans for Bitcoin City, a tax-free crypto haven powered by geothermal energy from a volcano, have failed to gain momentum and private investment has tumbled. El Salvador's public debt meanwhile has skyrocketed on Bukele's watch to more than $30 billion, or 84% of the country's gross domestic product.

Economists said the government faced a difficult balancing act to reduce national debt without cutting much-needed social benefits to the country's poorest. "They could end up generating a critical situation for women and households in rural areas," economist Julia Evelyn Martínez based in San Salvador said” Reuters (Renteria, 2024). A mess that still requires time & discipline. But for progress to continue & not revert backwards, once Bukele’s current 5-year term ends, he will need a successor to continue what was started. To continue creating the tide that lifts all boats.

Asking a few locals about what will come next, they all have told me that they believe the next President, post-Bukele, will either be his wife, Gabriela Rodriguez de Bukele, or his brother, Karim Bukele Ortez (who many deem to be the smartest of the bunch). Agree to disagree about how this may look to outsiders, because to locals, many do not seem to care who, as long as their newfound freedom is not jeopardized in any material way.

By having consistency leads to political stability, if done right, and political stability is one of the four characteristics a country requires to be successful. For El Salvador, I think the main thing the government needs to remain consistent, is to be transparent. As an active Twitter/X member, he knows how to reach his audience via memes, heckling the IMF, being real & making his years as a leader count, all while keeping corruption to a minimum. This is how trust is built, & if this continues, El Salvador is well on its way to being a great startup nation.

2) A Well-Educated & Healthy Population

As for education & health in El Salvador, it is still in its infancy stages. Poverty creates unhealthy environments. A population where 80% of its food is imported, and a diet heavy on meat, sugar, coffee & beans, an opportunity exist for local production of food, but that time is soon but not yet. Having spent over a month in my second trip to El Salvador, I am making myself sick from too much meat & not enough vegetables to balance. Although I am not actively searching for one, but the closest I found to a vegetarian restaurant, is Subway (L😂L).

Sure, you find lots of coconuts for sale on the side of the road, along with bananas or mangos or other Made in El Salvador fruits. However, many of the farms that I visited are still using pesticides, or are in the process of going organic, but not fully operating organically…yet. Although time is required to be a healthier nation, education is a big part of the process, in my opinion, the biggest. The local salary here (as stated earlier), ranges between $2 & $4 per hour, and business is done in buildings that need a lot of attention. I’d say the majority of the nation are still living in slum-like conditions, few pockets of renovation in areas, but the majority live in something that resemble homemade hut infrastructure. But this is to be expected, because this country is still learning how to walk on their own two feet again. Most of what is sold in the shops are clothes and souvenirs, and in food shops are: heavy foods & sugary drinks. Yes, you can find pockets of promise, as this is a developing country, but change takes time. And the change required here is quite drastic for an American or European brain. But with a hopeful heart & an the mind of a visionary, you can see a promising future in “The Land of Volcanoes” as it is nicknamed.

El Salvador is an extremely fortunate piece of the Earth that has the potential of becoming both an agricultural & wellness hub. However, for this to occur, it needs more farmers, specifically organic farmers, & to not be infiltrated by well-known global brands that care more about profits than people. The talent & mindset is already here, as this is also a nation for growing coffee beans or tropical fruits (as mentioned previously). However, as a country once filled by corruption & communist influence (read this link: Communist Interference in El Salvador - (United States Department of State: Bureau of Public Affairs, 1982)) ), restriction on farmers & grocery shops have been greatly affected over time.

But after attending the Adopting Bitcoin 2024 conference, a man that I never heard of, Dr. Jack Kruse came to speak on stage, & what a badass. This man is about to revolutionize health in El Salvador, as he stated that he is currently in the process of creating health amendments for El Salvador’s medical constitution, designed to protect the population from horrible health policy and/or global "de-speciation" outcomes. You can follow his work here: https://www.patreon.com/DrJackKruse or in the links (below):

3) A Strong Economy

In my experience, it is hard for me to locate many schools around here (maybe partially due to my lack of the local language), but I sense that the education is pretty poor in El Salvador. I have seen many kids working for their family businesses, where in a developed world, those kids may be using such time to study, to better their futures.

The single greatest decision that President Bukele ever made was (thanks to the work by Hope House & Bitcoin Beach), was making Bitcoin legal tender in this country. The first nation to ever acknowledge Bitcoin as a currency, which in my opinion, it is a form of such. Adopting Bitcoin as legal tender was a genius move that helps small businesses save on credit cards fees, taking away power from the visa & mastercards of the world.

Before with the gang members playing the role of tax collector, & business owners had to pay a gang tax just to be able to continue to exist, it makes sense why El Salvador needs Bitcoin. It is a transparent protocol that checkmates unwarranted & unchecked corruption. Symbolic, as both the resilience of Bitcoin & Salvadorños or aka Salvadorians were learned via navigating in an unjust system. Navigating a maze that aims to garnish power, control, & to keep people from reaching their true potential. A system that forces people into the status quo, & killing those who disobey. Just like when people learn that they are powerful if they work together, Bitcoin isn’t any different. People can decentralize & Bitcoin is decentralized. As with Bitcoin, unless the entire world’s internet shuts down simultaneously, Bitcoin is “unkillable”. On another note, with energy being effectively free, it gives Bitcoin the best form of resilience because nature is unstoppable & has an uncanny beauty when we work with nature rather than against it.

Remember how I stated El Salvador is the “Land of Volcanoes”? El Salvador is utilizing nature’s gift of geothermal energy to mine Bitcoin, which in turns adds to its resilience & beauty (Read this link: Volcanoes & Bitcoin - (El Salvador News 2, 2024))(see photo below).

Under the current leadership of, President Nayib Bukele & the (hopefully) the great future leaders of this tiny great nation, will continue giving this once defeated nation hope & prosperity, because they honestly deserve it. Little does most of this population yet know, how Bitcoin is contributing to their positive mental models. As time is of the essence, Bukele has also now implemented the Bitcoin protocol in schools across the nation, giving kids the education needed to be the change makers of the future. To flywheel solutions for problems that will benefit society as a whole, thanks to technological advancements. For El Salvador, their focus is on Bitcoin, technology & artificial intelligence, where starting a company in one of these industries give great perks & incentives. The mission is clear…build & accelerate what has been built, is being built & will be built. Create interoperability.

But all of this to say, that countries who use energy to advance society will win the future, simply because… (👇)

If El Salvador’s trend of choosing people over profits continues, it will continue to be a shining example for other countries to follow, and well on its way to dominating the future. The best comparison I can think of, with regards to how I see El Salvador’s transformation looking like, is Singapore. From Slums to Skyscrapers (see photo below).

4) Rule of Law & Property Rights

Although I am not fully versed on this arena, I can say that this is the weakest area for El Salvador today, and rightfully so after decades of war & violence. But things are improving in this arena.

With the gang members locked away in jail forever, people’s perception for the rule of law is improving, slowly but surely. But from many sources, there are still many challenges that persist. One example of this, is that innocent people are getting bunched together with gang members & being locked away for not committing a crime. So there is that.

But one I am aware of personally, is hearing of corruption during the land searching process. When crime was still running rampant in this country, the land grid had no identity & the lawyers to help you were giving away people’s land to criminals & those that they directly benefitted from, even though you paid for ownership of said land.

So today, when looking for a piece of property, because there are still corrupt lawyers within the population, any land above $28,000 you will need to go to a government building to retrieve a password, so no lawyer can alter your land outside of your authority. And also, El Salvador has created a new land grid to showcase land ownership & land availability. Which is why a lwayer is required, because you pay them to match the land owner to the land deed, making sure you are not scammed out of your money or soon-to-be property. But according the El Salvador’s constitution, you are limited to 245 hectares of land ownership (605 acres) per person, unless you performing an industrial purpose or the land is rural.

As I am sure there is more than meets the eye, but no country is perfect, and all country’s are works in progress. But for El Salvador, its a grassroots effort.

To end, not only did El Salvador approve a new intellectual property law (July 2024) & Salvadoran Institute of Intellectual Property (ISPI), as its service provider, to protect trade secrets, plant varieties & traditional knowledge governments, it also created greater financial transparency via Bitcoin Reserves.

To be held accountable, all governments need watchful eyes on their movements for their nation to progress. The majority want prosperity for their country, rather than cause harm. Since transparency matters for a nation to build strength, when it comes to financial transparency, El Salvador is leading the charge by sharing their 1 Bitcoin per day purchase with the public. How cool! Check it out here: (Bitcoin Office, El Salvador - (Bitcoin Office, 2024)).

PS- Congrats to all Bitcoiners for holding steadfast through trial, error & patience. It’s been an honor to witness Bitcoin reach the $100,000 milestone in Bitcoin Country. There is strength in numbers & in conviction.

Bonus:

All For Now, Peace ✌️☮️

#SowSaveSustain

Raven at Finperma

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