I met with a high-level official at the Embassy of El Salvador in DC in preparation for my trip there this summer to explore the emerging Bitcoin and business ecosystem that is taking root there.

We had a wide-ranging discussion covering many topics, including El Salvador’s turbulent history (Civil War in the 80s) and the influx of gangs in the 90s (which apparently originated from California and Mexico, not homegrown).

But, the real story of El Salvador is how it is overcoming its past and laying the foundation for an incredibly prosperous future. The President, Nayib Bukele, in a genius PR move made Bitcoin legal tender in the country, bought Bitcoin for the national treasury, passed a law allowing for bonds to be issued backed by the Bitcoin, and eliminated taxes on technology innovation.

Despite all of this momentum, the negative perception persists.

First, it’s difficult to overcome 40 years of notoriety as the “homicide capital of the world.”

Second, the President, although roundly praised by his citizens (and I’ve met a number of El Salvadorans in the US who LOVE him), seems to be catching flak for the incarceration of 60,000 suspected gang members.

Outlets like NPR accuse him of “human rights abuses” for the incarceration numbers, but regular Salvadorans will respond with “where were your concerns with our human rights when we were being wantonly killed on the streets by the gang members who controlled our country? Now, it’s safe. We can go out at night. Our girls aren’t gang-raped and our boys aren’t forced into working for the gangs.”

Frustrating though it may be, perception takes time to change, but where there is a gap between perception and reality is where opportunity exists.

While Foreign Direct Investment has been relatively flat for the past few years about $1 bn annually, tourism numbers are up.

According to Google Bard:

The number of tourists who visit El Salvador annually has been increasing in recent years. In 2021, the country welcomed over 1.2 million international visitors, a 21.46% increase from 2020. The majority of tourists to El Salvador come from the United States, followed by Guatemala, Honduras, and Nicaragua.

There are a number of reasons why tourists are drawn to El Salvador. The country has a rich history and culture, beautiful beaches, and a variety of outdoor activities to enjoy. El Salvador is also a relatively affordable destination, making it a popular choice for budget-minded travelers.

The government of El Salvador is working to promote tourism as a key economic driver. The country has invested in infrastructure, such as new hotels and airports, and has launched a number of marketing campaigns to attract tourists from around the world.

The tourism industry is expected to continue to grow in El Salvador in the coming years. The country has a number of advantages that make it a attractive destination for tourists, including its natural beauty, cultural heritage, and affordability. With continued investment and promotion, El Salvador has the potential to become a major tourist destination in the region.

And entrepreneurs are starting to move there, with the leading Bitcoin Rewards app, Fold, making El Salvador its first non-US operating location.

There’s education available for former gang members to learn about Bitcoin and emerging technology.

That is not to say that everything is perfect. There’s a lot of Bitcoin education that remains to be done among the population, Central America’s largest, and the cost of energy (which is a critical input for profitably mining Bitcoin-a key part of Bukele’s plan) remains high. Plus, this is a country that is not blessed with a huge amount of natural resources for export.

The country also needs to attract investment in infrastructure for things like water treatment.

But all change, whether it’s diet and exercise, or a national transformation is challenging and difficult.

What Bukele and his government are doing is praiseworthy (even if organizations that keep countries impoverished like the IMF and World Bank don’t support it)

That’s why I am going…and also because, if this experiment works, it will be monumental, and perhaps lucrative as well.

That’s another reason I am going.

And, as more and more people go, find opportunity, and begin to tell another story, the perception will start to change.