“Somebody has to be the custodian and restate the vision. There’s so much work ahead. When embarking on a journey of a thousand miles and you’ve only taken the first step, it can feel daunting. It’s beneficial to have someone affirming, ‘We are one step closer, and the target is real.’” -Steve Jobs
Stacy Herbert, the Director of the National Bitcoin Office (ONBTC) under the Office of the President of El Salvador, shared this quote with me, her face glowing with pride and determination, as we began our interview.
Herbert’s mission became apparent, one that launched in 2010 when she and her partner, Max Keiser, uncovered Bitcoin and quickly emerged as early advocates. This journey has now expanded to include the President of El Salvador, Nayib Bukele, along with the nation’s officials and citizens, who have come to informally refer to El Salvador as “Bitcoin country” in crypto circles.
Using various metrics, the Bitcoin Office has already marked several successes since its establishment in December 2022. The office has accumulated 5,836 bitcoins representing the country’s reserves. It has educated 80,000 Salvadoran civil servants about Bitcoin’s significance. Additionally, it has facilitated Bitcoin education initiatives from kindergarten to university through programs like Mi Primer Bitcoin and CUBO+. Furthermore, it has attracted entrepreneurs, investors, and other talented individuals to the nation.
While Herbert appreciates these achievements, she remains focused on future challenges, convinced that El Salvador’s greatest accomplishments are still forthcoming. She envisions that further Bitcoin adoption will ignite a new renaissance, elevating Salvadorans and continuing to draw the best minds from around the globe. Given the hurdles she has navigated since her arrival in the country three years ago, it’s hard to doubt her commitment to fostering this new era for El Salvador.
Beginning in El Salvador
Herbert and Keiser arrived in El Salvador toward the end of 2021, at the pinnacle of that year’s bitcoin bull market. However, the ensuing 2022 ushered in a period of despair as bitcoin’s value plummeted, particularly due to the broader collapse within the crypto industry.
This situation left Herbert and Keiser with the task of conveying to Salvadorans that the downfall of significant crypto companies did not equate to the demise of Bitcoin or confirmation of its unreality.
“FTX failed, BlockFi failed, and Celsius failed,” Herbert explained. “When people witnessed these failures, they equated them to Bitcoin — lumping them in with all the scams and frauds.”
Herbert stressed the criticality of guiding El Salvador along a bitcoin-focused path instead of one tied to the broader crypto landscape during that tumultuous period.
“There were two options: You could evolve into a crypto-oriented nation, or you could embrace Bitcoin,” Herbert stated.
“In a crypto nation, you compete against Las Vegas and Macau; the house perpetually wins in those scenarios. Likewise, in a crypto economy, a few wealthy individuals dominate the landscape. The pre-mines, the chip owners, and the dispensers always prevail,” she elaborated, emphasizing her desire to protect El Salvador from being exploited by the crypto industry.
“Conversely, you could pursue a path akin to what Switzerland achieved with gold, or how New York developed with US Treasuries. You could create flourishing capital markets. You could foster a robust economy — envisioning a new Singapore or an advanced Alexandria or Florence. We championed this vision.”
Renaissance 2.0
Alongside President Bukele and Keiser, a senior advisor to Bukele, Herbert envisions that El Salvador is embarking on one of history’s most significant periods of societal flourishing.
Similar to the Renaissance over 500 years ago in what is now northern Italy, El Salvador is laying the groundwork for an explosion of innovation and entrepreneurship by embracing the hardest money known to mankind.
“Florence didn’t merely have Da Vinci, Michelangelo, and Botticelli, alongside architects, explorers, and astronomers, and then stumble upon perfect money,” Herbert elaborated.
“They discovered the ideal currency of their time — the Florin — which catalyzed a wealth accumulation effect concentrating more riches in Florence compared to other city-states in Italy and throughout Europe,” she noted, explaining how great thinkers and creators flocked to Florence after it asserted its status as a commercial hub.
“We believe a similar phenomenon could unfold in El Salvador.”
Adopting Bukele’s Vision
Herbert emphasized throughout our conversation that El Salvador’s transformation would not have been viable without Bukele’s leadership, whose approval rating among Salvadorans remains above 90%, making him one of the most popular leaders worldwide.
A major task for the ONBTC now is encouraging the rest of the nation to perceive and embrace Bukele’s vision.
“It’s not enough for President Bukele to [believe in Bitcoin],” Herbert pointed out.
“A portion of his 80,000 civil servants must grasp his goals. As the keeper of the vision, our responsibility is to ensure everyone understands President Bukele’s aspirations for El Salvador,” she added.
To garner wider support across the nation, Herbert has recruited notable Bitcoin experts to educate Salvadoran developers and governmental personnel.
This initiative began with Bitcoin developer Jimmy Song visiting El Salvador in March 2022 (prior to the ONBTC’s official formation) to instruct developers on contributing to Bitcoin Core.
“Jimmy Song imparted his Bitcoin course to seven Salvadorans,” reflected Herbert. “One individual, Mario Flamenco, later became my assistant and the second-in-command at the Bitcoin office.”
Giacomo Zucco was also enlisted, not only to instruct developers but also to teach three days of Bitcoin education to civil servants. Herbert clarified that this educational endeavor extends beyond technical knowledge; it aims to reshape the mindset of civil servants.
“They are the interface with the citizens,” Herbert stated about the country’s civil servants, “so it’s vital that they recognize why we identify as a Bitcoin nation in a broader sense.”
Herbert frequently highlighted the significance of mindset during our discussion. She underscored that the ONBTC’s mission transcends merely helping people comprehend Bitcoin — it is also about mentally and emotionally empowering them to excel.
“To achieve the extraordinary, [you require] individuals in government and society who are prepared to be exceptional,” she stated.
“We’re cultivating a populace with the mentality necessary to become Florence 2.0 or Singapore 2.0 — aspiring to something extraordinary,” she elaborated.
“Unity in understanding each individual’s significance is critical. What we’re accomplishing is remarkable. What President Bukele has provided this country is undeniably exceptional.”
Passport Initiatives
Through the ONBTC, Bukele is preparing Salvadorans for remarkable prospects, whilst simultaneously using El Salvador’s passport initiatives to attract those with proven track records of achievement.
On April 6, 2024, Bukele disclosed that El Salvador would distribute 5,000 passports to skilled professionals such as scientists, physicians, and even philosophers.
We’re offering 5,000 free passports (equivalent to $5 billion in our passport program) to highly skilled scientists, engineers, doctors, artists, and philosophers from abroad.
This represents less than 0.1% of our population, so granting them full citizen status, including…
— Nayib Bukele (@nayibbukele) April 6, 2024
As Bukele pointed out, these 5,000 passports essentially represent a $5 billion venture. El Salvador now offers rapid passport issuance for those making a $1 million investment in the nation, using either BTC or USDT.
While this initiative aims to draw top talent from abroad, it has also positively influenced the Salvadoran psyche, according to Herbert.
“Our strategy with the million-dollar fee was effective,” noted Herbert.
“Looking back, Salvadorans began to realize, ‘Wow, some people were paying $10,000 to coyotes to smuggle them to the US, and my passport is valued at $1 million.’ Even if just a thousand Salvadorans come to this realization, it plants a significant seed of change in their mindset,” she elaborated.
What Lies Ahead for The Bitcoin Office?
Herbert announced that the ONBTC is poised to reveal significant updates in the coming three to four weeks. For now, however, the focus remains on launching the first Bitcoin banks, which she confidently believes will aid El Salvador in constructing robust capital markets.
“Bitcoin banks are on the way, and we will steadily start building the capital markets we need — a foundation we have laid over the past 21 months,” stated Herbert.
Beyond Bitcoin banks, Herbert expresses optimism about the limitless possibilities awaiting El Salvador, as the groundwork laid by the ONBTC launches the country into a revitalization phase.
“We possess the education, we’ve fostered the right mindset, and we’ve initiated the most significant rebranding in history for El Salvador. Furthermore, support for President Bukele continues to grow, as he enjoys ongoing successes,” she remarked. “We’ve already traversed a thousand miles in the last 21 months, and now another thousand-mile journey commences.”
Editor’s note: Though we typically highlight startup founders for our Founders series, this week we opted to profile the leader of a governmental institution who has steered its progress since inception.
