El Salvador’s Bitcoin Gamble Backfires as Governments Bet on AI
National governments worldwide are diving headfirst into experimental tech, with mixed results. From cryptocurrency to artificial intelligence, these bold bets don’t always pay off—and sometimes, they backfire spectacularly.
El Salvador made headlines in 2021 by adopting Bitcoin as legal tender, a move championed by President Nayib Bukele. The goal was to boost financial inclusion and attract investment. Instead, the experiment has been plagued by technical issues, low adoption, and market volatility. Rather than stabilizing the economy, Bitcoin’s wild price swings have made everyday transactions unpredictable. Most Salvadorans still prefer cash, and the government’s Bitcoin reserves have lost significant value. What was pitched as a financial revolution now looks more like a cautionary tale.
Meanwhile, the United States is betting big on AI. Former President Donald Trump announced a $500 billion AI infrastructure project, aiming to position the country as a global leader in artificial intelligence. Yet, six months later, the initiative has stalled. Critics argue the plan lacks clear direction, with no major developments or funding allocations. While AI holds immense potential, this project risks becoming another unfilled promise in the growing pile of ambitious but unrealized tech proposals.
Albania, a small nation of 2.7 million, is taking a different approach. Facing persistent corruption in its bureaucracy, the government is turning to AI models like ChatGPT to streamline public services. The idea is to reduce human interference—and thus opportunities for graft—by automating administrative tasks. Early trials show promise, but challenges remain. AI systems require vast amounts of accurate data, and biases in training models could inadvertently replicate existing inequalities. Still, if successful, Albania’s experiment could offer a blueprint for other nations struggling with institutional corruption.
These cases highlight a common theme: governments are eager to harness cutting-edge technology, but execution is key. Whether it’s cryptocurrency, AI infrastructure, or automated governance, the gap between vision and reality can be vast. For every successful innovation, there are multiple failures—proof that tech alone isn’t a magic solution. The real test is whether these experiments adapt, evolve, or get abandoned when the hype fades.
