Wagging the Bitcoin Dog

On Wednesday, thousands of Salvadorans celebrated the 200th anniversary of the country’s independence by marching in protest against President Nayib Bukele’s administration. President Bukele’s decision to make Bitcoin an officially recognized currency in El Salvador succeeded in getting a lot of attention. And that was precisely the point. The boldness of the plan, its bungled rollout, and its embrace of “the new” no matter the predictable disruptions associated with insisting that Bitcoin be widely accepted as legal tender, meant that some of the attention that should have been paid to Bukele’s anti-democratic efforts was diverted. Bukele is playing a massive game of wag the dog, but instead of doing so with a foreign invasion, his administration is doing the same through its strategic embrace of Bitcoin.