Harvard study highlights El Salvador’s use of Bitcoin for economic growth and stability

• Harvard study examines El Salvador’s transformation from “murder capital” to “Bitcoin capital” and highlights Bukele’s strategic economic transformation efforts.
• The report highlights the adoption of Bitcoin as a central part of Bukele’s plan to improve its economy and global reputation.

A recent study by Harvard University analyzes the transformation of El Salvador, which has gonefrom “murder capital of the world” to “Bitcoin capital of the world.” The report, titled “El Salvador – Surfing from Red Ocean to Blue,” examines how the country is trying to change its international image.

It was first published in the Harvard Economic Catalog in March and gained wider attention after President Nayib Bukele made it public.

The study, written by professors Chan Kim and Renée Mauborgne, focuses on the “blue ocean” strategy, which is about creating new market opportunities. It describes how Bukele, who was elected in 2019, has tackled problems such as gang violence and economic stagnation.

The introduction of Bitcoin as legal tender in 2021 plays a central role in his strategy for economic development and improving El Salvador’s global standing .

The report highlights the growth in tourism, foreign investment and GDP, as well as the improvement in income levels and the quality of life of citizens. There are also signs of reverse migration, as Salvadorans who had previously left the country are returning due to new opportunities.

According to the Harvard analysis, Bukele’s strategy is not limited to companies, but could serve as a model for other countries . It suggests that strategic decisions and targeted actions can help countries overcome difficult conditions and achieve growth.

Stacy Herbert, Director of the National Bitcoin Office of El Salvador, commented on the Harvard study. Quoting a sentence from the report, she noted that:

“El Salvador’s strategic transformation is to move from a country without technology to a Bitcoin pioneer.”

Herbert emphasized the country’s transition from a limited technological infrastructure to an emerging role in the cryptocurrency space. This transition provides a real-time case study of Bitcoin’s economic and social impact on national policy.

As of 2024 , the Bukele government continues to focus on economic growth, with Bitcoin as a central component.

Douglas Rodríguez, President of the Central Reserve Bank, noted that economic improvement will be driven by public safety measures, international events and measures to encourage private investment and tourism, both of which involve Bitcoin.