SAN SALVADOR (AP) — El Salvador, the first country to adopt Bitcoin as legal tender, is now exploring the potential of Solana’s blockchain to enhance its digital infrastructure, government officials said Thursday. The move signals the country’s ongoing commitment to cryptocurrency, despite global regulatory scrutiny and market volatility.
Exploring Blockchain for Government Use
Officials from El Salvador’s National Bitcoin Office (ONBTC) confirmed discussions with representatives from Solana Labs, the developers behind the high-speed blockchain network. The talks reportedly focus on using Solana’s technology for financial services, digital identity programs, and record-keeping systems.
“Solana’s low fees and fast transactions make it a strong candidate for government-backed digital solutions,” said Carlos Enrique Rodríguez, an economic adviser to the government. “We are committed to exploring blockchain innovations that enhance efficiency and financial inclusion.”
Bitcoin Remains the Cornerstone
El Salvador made history in 2021 by making Bitcoin legal tender, alongside the U.S. dollar. The government has since promoted Bitcoin-backed bonds, a nationwide digital wallet (Chivo), and Bitcoin City—a planned tax-free crypto hub. However, the initiative has faced mixed results, with low citizen adoption rates and concerns over the country’s financial stability.
Despite these challenges, President Nayib Bukele remains a strong proponent of Bitcoin and continues to buy BTC for the country’s treasury.
Why Solana?
Unlike Bitcoin, which relies on a proof-of-work (PoW) system that can be slow and energy-intensive, Solana operates on a proof-of-stake (PoS) and proof-of-history (PoH) model, enabling faster transactions and lower costs. These advantages make it appealing for government use cases beyond currency, such as:
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Digital IDs: Storing and verifying citizen information.
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Supply Chain Tracking: Enhancing transparency for public sector operations.
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Payment Processing: Enabling low-cost transactions for small businesses.
In addition, Solana’s growing popularity as a trading asset has sparked interest among Salvadorans who actively trade Solana and other cryptocurrencies on global exchanges. The network's rapid transaction speeds and scalability have positioned it as a preferred choice for both institutional and retail investors looking for alternatives to Bitcoin and Ethereum.
Industry analysts note that Solana’s recent partnership with Visa indicates its rising influence in mainstream finance. However, the network has also experienced multiple outages, raising questions about its long-term stability.
A Move Toward Multi-Chain Adoption?
While El Salvador’s Bitcoin experiment remains the centerpiece of its crypto strategy, the government’s openness to Solana and other blockchain networks suggests a broader multi-chain approach. Experts say this could increase efficiency and reduce dependency on a single blockchain.
“El Salvador embracing other blockchains would be a significant shift,” said crypto analyst Laura Martínez. “It suggests they are looking beyond Bitcoin maximalism and toward practical blockchain adoption.”
What’s Next?
The government has not yet announced a formal agreement with Solana Labs, but discussions are ongoing. Officials say any potential blockchain integration will align with El Salvador’s existing Bitcoin-based financial policies.
As the country continues its crypto-driven economic experiment, the world will be watching whether El Salvador can successfully blend Bitcoin and other blockchain technologies into its national framework—while also giving its citizens new opportunities to trade Solana and other digital assets in a growing crypto economy.
Disclaimer:
The information in this press release is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions.