The Network State Podcast #25 - El Salvador's National Bitcoin Office

Date: January 13, 2026
Host: ns.com (A)
Guest: Stacy Herbert (B) – Director, El Salvador National Bitcoin Office

Episode Overview

This episode features Stacy Herbert, Director of the National Bitcoin Office of El Salvador, in an in-depth conversation about the country's transformation into the "Bitcoin Country." The conversation spans El Salvador's remarkable rebranding, its regulatory innovations in crypto and AI, the dramatic crackdown on gangs, and the nation's ambition to become a magnet for global talent, digital nomads, and builders. Stacy recounts the challenges, strategies, and bold vision underpinning El Salvador’s ongoing emergence as a true “startup country”—a template for the network state movement.

1. From Homicide Capital to Bitcoin Country: El Salvador’s Transformation

Key Points:

• Before 2021, El Salvador was globally infamous as the "homicide capital of the world." With bitcoin’s adoption as legal tender, it transformed overnight.
  "[Before Bitcoin] if you had googled El Salvador, all you came up with was, El Salvador is homicide capital of the world. After it became bitcoin legal tender, it was El Salvador is bitcoin country. This is one of the greatest rebrands in history, if not the greatest." – Stacy Herbert [00:36]
• The change was more than cosmetic—the rebrand was paired with substantive policy and infrastructural reforms.
• Bitcoiners, being a discerning crowd, wouldn't have accepted a mere marketing ploy: the government had to build real things.

Memorable Quote:
"If it had been just a marketing campaign, they would have sussed it out. But they couldn't stop because we did start building real things." – Stacy Herbert [01:38]

2. Visionary Leadership: President Bukele as Tech Founder–Statesman

Key Points:

• President Nayib Bukele likened to Lee Kuan Yew (Singapore), Steve Jobs, and Elon Musk: charismatic, visionary, and bold.
• Bukele transformed El Salvador from a failed state into a global example through a combination of security, clear vision, and policy execution.
• His approach fused physical security (“war on gangs”) with establishing a regulatory environment conducive to global capital, much like Singapore’s development path.

Memorable Quotes:

• "He is like a Steve Jobs. He is like an Elon Musk. He has a vision… There are many heads of state, but there are only a few leaders that ever arise." – Stacy Herbert [08:07]
• "El Salvador was a failed state… and, you know, in a few years, like five years, we're going to be at the top. And you know what? He took us there." – Stacy Herbert [08:45]

3. Security and Liberation: The War on Gangs

Key Points:

• The "war on gangs" launched after a bloody weekend in March 2022, with 87 murders in 48 hours.
• Massive crackdown: 80,000 gang members arrested in 18 months, liberating formerly gang-occupied areas.
• The reform was paired with a restoration of hope, optimism, and basic freedoms (freedom of association).

Notable Moments:

• Distribution of donated bitcoins to victims in recently liberated areas was emotionally powerful.
  "I gave them each $2,000 worth of Bitcoin… one of the couples fell on the ground crying. It was a lifesaver for them." – Stacy Herbert [17:30]

Memorable Quote:

• "You gave people… their humanity back. Like, they could love their country. They could have pride in their country… They could have hope for their children." – Stacy Herbert [21:50]

4. Bitcoin, Capital Markets, and Regulatory Clarity

Key Points:

• El Salvador adopted a "layer one capital" strategy: US dollars, gold, and bitcoin as core reserves.
• Built clear, concrete regulatory frameworks instead of “regulation by enforcement.” "It wasn't some vague regulation by enforcement. You said, here's what's permissible, here's the process. You can come in." – Host [05:27]
• Attracted global attention and investment (e.g., Tether) by offering a unique brand and legal certainty.
• President Bukele recently added $50 million in gold to the central bank’s reserves.
  "We have the layer one money. We're on a US dollar standard… we have gold and we have bitcoin." – Stacy Herbert [10:26]

Memorable Quote:
"Charity is dependency, investment is independence." – Host [12:05]

5. AI and Exponential Innovation: Positioning for the Future

Key Points:

• El Salvador passed the world’s first comprehensive national AI regulatory framework—the “AI Law”—and a robot law is forthcoming.
• The country positions itself as pro-innovation and nimble versus the US (slow, fragmented regulation) and EU (hostile, restrictive approach).
• Explicit goal: attract “the best and brightest” AI builders, with regulatory clarity, fast-track citizenship, and tax incentives.

Memorable Quotes:

• "If everybody else wants to be dark, if the EU wants to ban and restrict and prevent innovation, well, that gives us an opportunity… Why not provide them with a safe harbor to build what they want to build?" – Stacy Herbert [26:56]
• "We’re building for a future that the best and brightest are going to come to El Salvador if we provide the framework for them to tell them, hey, we want you here." – Stacy Herbert [27:44]

6. Talent Magnet: Citizenship, Passports, and a Modern Florence

Key Points:

• "Bitcoin citizenship:" almost instant El Salvadoran citizenship for $1 million in bitcoin.
• New program to grant 5,000 passports to global talent—including philosophers (“a renaissance strategy”).
• National brand compared to Silicon Valley: now a “cool brand” with actual and symbolic value for tech companies, digital nomads, and entrepreneurs.
• Zero percent tax for many tech and innovation sectors; rapid, responsive government.

Memorable Quotes:

• "It's a brand enhancer. It's a place to be cool. It's a place to distinguish yourself among a sea of competitors around the world." – Stacy Herbert [33:30]
• "It's not simply the tech… there's also the philosophy. And that's something unique… that gives a level of a sort of renaissance." – Stacy Herbert [30:31]

7. Global Influence: The "Bukele Model" Spreading

Key Points:

• The “Bukele model” (security plus hard money) is inspiring leaders and reform movements across Latin America (notably Argentina and others), and even in the US. "The Bukele model on security has swept Latin America and America actually… That confidence, that discipline that is so important. That discipline is lacking in so many countries." – Stacy Herbert [36:08]
• Mexico, for example, is reportedly considering El Salvador’s pro-innovation approach for their AI regulation, moving away from restrictive EU-style rules.
• The combination of visionary leadership, a clear destination, and streamlined regulations provides a regionally and globally competitive edge.

Memorable Quote:
"We are leaders because we have a leader in charge… a leader with a clear vision." – Stacy Herbert [38:11]

8. The Practical Builder’s Guide: Visiting and Building in El Salvador

Key Points:

• Easy digital nomad visa—180 days on arrival, with simple residency and citizenship paths.
• Massive sense of local optimism and return migration: El Salvadorans abroad are coming back to build.
• Climate: an appealing range from tropical to temperate, depending on altitude.
• Call for more direct flights from global capitals such as Singapore and Dubai to facilitate easier visits.

Notable Information:

• November is “Bitcoin month” in El Salvador, with several major conferences (e.g., “Bitcoin Histórico” at the National Palace, Nov 12–13, 2026).
• Conference details: [bitcoinhistorico.com]

Memorable Quotes:

• "If you want to build and everybody around you is depressed… it's not a great environment. But in El Salvador, everybody is happy, the locals are happy… There is a huge sense of optimism." – Stacy Herbert [40:48]
• "In bitcoin we have that phrase ‘don’t trust, verify.’ And you really must come and verify for yourself that this transformation that has happened in El Salvador is very deep, very profound, and very real." – Stacy Herbert [44:49]

9. Closing Thoughts

Final Invitation:
“You have to come see it for yourself because you have to feel it to understand just what hope feels like, just what optimism feels like, just what strong men creating good times is... We’re going through that right now… you’re going to want to stay and you’re going to want to build.” – Stacy Herbert [45:08]

Useful Timestamps

• Rebranding to Bitcoin Country: [00:36] – [03:17]
• Regulatory Clarity and Capital: [05:27] – [07:06]
• Bukele’s Vision and Leadership: [08:07] – [10:26]
• Gang War and Security Transformation: [14:02] – [23:30]
• AI Regulation and Tech Ambitions: [23:30] – [28:55]
• Attracting Global Talent & Renaissance Strategy: [28:55] – [34:14]
• Influence Across Latin America: [36:08] – [38:06]
• How to Build in El Salvador: [40:32] – [44:49]
• Conference Info: [43:14] – [44:38]
• Invitation to Visit and Build: [44:49]

Summary Table

| Theme | Highlights | |------------------------------|-----------------------------------------------------------------| | Rebranding | From homicide capital to bitcoin country | | Security | Gang war; liberation of people and mindset | | Capital/Regulation | Layer one capital (USD, gold, bitcoin); world’s first AI law | | Leadership | Bukele as a tech-founder stateman; 92% approval | | Talent Magnet | Fast-track citizenship, 0% taxes, pro-innovation for digital nomads | | Brand | Global attention; “cool factor”; Bitcoin Country as Google result | | Global Influence | Bukele model inspiring Latin America and US | | Builder’s Opportunity | Easy visas, optimism, major conferences, invitation to verify |

For builders, digital nomads, and network staters: El Salvador is positioned as a live experiment in reinventing the nation-state as a dynamic, pro-freedom, pro-innovation platform—an open invitation to join, build, and witness a historic transformation firsthand.