El Salvador: Formation of a Sovereign State

I spent the past week in El Salvador for the third time in a year, and it was clear that the country was undergoing real change. It’s not just theoretical or superficial, it’s a change in how people live, think, build and imagine their futures. The moment that crystallized this change came over the weekend during a private dinner with President Nayib Boucre. I had the opportunity to participate in it.

I’ve been following his work for several years. For my podcast, I interviewed nine Salvadorans and expatriates living in the country, as well as merchants, builders, grassroots organizers, and ordinary citizens. A year ago, I tweeted that I dreamed of meeting him someday.

When I approached him for a photo at the end of dinner and said, “Hello, I’m Efrat,” I didn’t expect him to answer right away before I could explain who I was.
“I know you, I’ve seen your podcast.”

It was one of those unforgettable moments. Because I felt that the week was connected to something bigger that was happening in this country.

Three layers of a nation on the move

Three events took place during the week: Health Restoration, Bitcoin Adoption, and Bitcoin History, each of which revealed a different layer of El Salvador’s trajectory.

The Restoring Health Symposium, led by El Salvador’s Dr. Kenneth Fernandez Taylor, explored the intersection of sound health and sound money. Part of the conversation centered around how unhealthy money and high time preferences shape stress, uncertainty, and long-term health. In a country that is regaining security and economic freedom, the relationship between health and money is not abstract but intuitive. Four years ago, as the world was slowly being turned upside down by an “apocalyptic pandemic,” a health symposium bringing together truth-seeking, freedom-loving doctors, healers, and experts felt like a distant dream. But in El Salvador, the dream is becoming a reality.

At Adopting Bitcoin, I witnessed the grassroots driving force behind this change. Circular economies like El Salvador’s Bitcoin Beach (El Zonte) and Berlin really demonstrate what happens when people earn, spend, and save on the sat. Communities like “Bitcoin Babies,” “Les Femmes Orange,” and Argentina’s “La Crypta” emphasize that Bitcoin is for everyone. Merchants naturally accept Bitcoin. Children will grow up around them. “My First Bitcoin” has announced its next chapter, supporting more than 70 projects across 40 countries with materials, frameworks, and guidance for community-driven Bitcoin education. The startup floor was filled with founders who have offices here and are building businesses from El Salvador. The common theme I kept hearing was simple: “We can do something here.”

Photo: Michael Hollomon Jr. | Source

Bitcoin and El Salvador’s historic moment

But the highlight of the week, the moment that made up all the others, was “Bitcoin Histórico.” It was the world’s first government-sponsored Bitcoin conference, hosted by Stacey Herbert and her team at the World’s First Government Bitcoin Bureau, and held at the National Palace and National Theatre. These are two highly iconic landmarks, and the decision to hold the Bitcoin conference in such a royal setting said more than any speech. The hall was filled with ministers, entrepreneurs and international speakers. Voices from the United States, Europe, Latin America, and Africa. Guests were given a booklet with Bukele’s photo on the cover titled “El Salvador is the Land of Bitcoin,” making it clear that Bitcoin is not just a side project here, but the country’s direction.

Photo: Efrat Fenigsson

Outdoors, in Plaza Heraldo Barrios, the meeting extended into the public space. The sessions were screened with Spanish translations for local audiences including families, students, and the elderly. Shops and stalls accepted dirt. Bitcoin is in its natural habitat, part of daily life in cities, and ordinary people were also part of the conference.

Several announcements emphasized the country’s policy. The Ministry of Agriculture has signed a cooperation agreement with the Beef Initiative to strengthen local cattle production. Steak ‘n Shake has announced that it will be targeting El Salvador as its first Latin American location and will accept Bitcoin from day one.

Photo: Salvadoran translation, source

The government, with help from Hydra Host, announced the purchase of Nvidia B300 chips with computing power powerful enough to train and run advanced AI models locally. This is a step toward a sovereign computing infrastructure that reduces dependence on Big Tech data centers and allows El Salvador to build its own AI capabilities within the country. Menpur has announced that it will incorporate in El Salvador following a recent $17 million investment. And with support from Lina Seiche and the Bitcoin Office, 500 classrooms will be renovated for Bitcoin and financial education as part of the country’s broader “Two Schools a Day” initiative to modernize and expand its education infrastructure at scale. Together, these movements form a consistent pattern in which countries construct their futures across multiple layers at once.

Ricardo Salinas’ presence in Histórico added weight to this moment. In his speech, he said, “El Salvador is on the right side of history,” pointing to dramatic improvements in security, saying, “It’s better than Japan. I wish my country was like this.” The words of one of Latin America’s most influential entrepreneurs resonated with the feelings of many visitors this week.

Photo: Efrat Fenigsson

presidential banquet

But the clearest window into that future appeared at dinner.

Bukele is nothing like his international caricature. He’s sharp, fast, funny, and completely knowledgeable about Bitcoin culture. The price that day was under $100,000, he joked while sitting at the dinner table. “It’s over, folks. Bitcoin is over.” He is not a politician who tries to be relatable or quote scripted talking points. He actually understands the room and receives Bitcoin.

When the conversation turned to Bitcoin’s long-term trajectory, he said something that stuck with me. “Bitcoin should be a currency.”

It’s not an investment, it’s not an asset class, it’s not a currency. He clearly sees the end state. Then he sees the stairs leading there. He spoke about the circular economy – El Zonte, Berlin – as a practical mechanism for implementation. The community that uses Bitcoin on a daily basis takes it from an idea to a functioning monetary system.

His wit revealed as much as his analysis. When Giacomo Zucco, director of Plan B Network, was introduced as an anarcho-capitalist, Bukele immediately replied, “No problem, I’m friends with Millais too,” and continued to refer to him as an “anarchist” throughout the dinner. After Wiz presented him with a katana (Japanese sword) and Giacomo presented him with a bottle of rum named “Dictador” (a mild jab at the tone of the media), someone noted that Bukele doesn’t drink. “It’s okay, I don’t really fight with swords either,” he replied immediately.

At the end of the night, Giacomo thanked him, and Bukele smiled and said something that summed up his entire approach to governance:

happy people whistle

I have spent time in many countries that are drifting towards a dark trajectory. More surveillance, more centralization, more control, more violence. What is happening in El Salvador feels like the opposite. Security without oppression, structure without suffocation, freedom with responsibility. After decades of gang oppression, Salvadorans feel liberated. You can see it in their faces. They are kind, relaxed, and appreciative. On a previous trip, I saw a 75-year-old man riding his bicycle through El Zonte at sunrise, whistling. “When do people whistle?” I asked myself. “Happy people whistle. People whistle when they feel safe.” That simple moment became my quiet metaphor for this place.

Yes, the country still works with world institutions such as the IMF. While the recent discontinuation of Bitcoin as a legal tender was disappointing, when you look inside it feels like one step back and four steps forward. To be sure, progress has been uneven. But the direction is unmistakable: a push toward monetary sovereignty, digital sovereignty, educational sovereignty, and popular sovereignty, all moving in the same direction.

This week gave me a glimpse of a nation rebuilding itself.

While most other countries are struggling with their economies, security, and weak social structures under the influence of global agendas, El Salvador is transforming its reality and moving into a new timeline.
And meeting Bukele didn’t feel like meeting the president.

It was like meeting the architect of a country determined to liberate his country and lead the way.