El Salvador’s Digital Asset Approach: A Conversation with Juan Carlos Reyes

 It’s early morning in El Salvador, and the sun is just beginning to rise over the immaculate greens of a golf course. The sound of a golf cart hums softly in the background as Juan Carlos Reyes, President of El Salvador’s National Commission of Digital Assets (CNAD), answers my call. Golfing is his sanctuary, his daily ritual that clears his mind before diving into the complexities of transforming a nation’s financial landscape. Today, we talk about El Salvador’s bold leap into the digital asset space, its global implications, and the lessons it offers to the world.

The Vision Behind CNAD

Q: Juan Carlos, you’ve often described El Salvador as a “pioneer” in digital assets. What sets your approach apart from other nations?

JC: “What sets us apart is that we didn’t just adopt Bitcoin as legal tender and stop there—we built an entire infrastructure around it. We established CNAD as an independent regulatory body that works with the industry and enables innovation while ensuring market stability. This way, we’ve created a framework that ensures digital assets are tied to real-world value while safeguarding our citizens from speculative risks. It’s not about saying ‘yes’ to every project—it’s about saying ‘yes’ to the right ones.”

He pauses momentarily, then adds with conviction: “We’re not afraid to say no. Our project approval rate is only 16%. But those 16% are solid, long-term players who align with our vision for responsible innovation.”

The Bitcoin Experiment: Infrastructure, Successes, and Challenges

Q: Let’s talk about Bitcoin. It’s been over three years since El Salvador made it legal tender. What have been the biggest successes and challenges?

JC: “The biggest success is that we’ve positioned El Salvador as a hub for financial innovation. Bitcoin was just the starting point—it opened the door for our digital assets strategy and the building blocks for an entirely new economic model.”

He leans forward slightly, his tone turning serious: “But let’s not sugarcoat it—there have been challenges. Market volatility has been tough, and adoption hasn’t been as fast as we’d hoped. Educating all El Salvadorians about how to use Bitcoin and other digital assets needs to be revved. And then there’s international skepticism—critics love to point fingers without understanding what we’re trying to achieve.”

Q: How do you respond to that skepticism?

JC: “With results,” he says. “We passed the GAFILAT evaluation with flying colors, proving that our regulatory framework is robust enough to meet international compliance standards. That alone silences a lot of critics.”

Education: Building Expertise from Scratch

Q: One of your biggest challenges seems to be education—both for regulators and the public. How are you tackling this?

JC: “It’s like building the plane while flying it,” he admits with a wry smile. “There are no established training programs for digital asset regulation like in traditional finance. We’ve had to create everything from scratch—risk matrices, compliance frameworks, even educational materials.”

He adds, “But now we have formed an industry-leading team. That’s why at CNAD, we’re building expertise other countries are starting to look up to.”

DAS.SV: A Platform for Collaboration

Q: Let’s talk about DAS.SV—The first Digital Assets Summit in El Salvador will be held this April. What do you hope to achieve with this event?

JC: His face lights up at the mention of DAS.SV. “This event is a call to action,” he says passionately. “We’re bringing together regulators, policymakers, and industry leaders from over 25 countries to share our blueprint with deep industry insights and our framework for responsible innovation.”

He continues, “We are developing a series of panels and workshops covering everything from risk assessment to compliance and case studies on what works—and what doesn’t—in digital asset regulation. The goal is simple: to show other nations why what happened in Argentina with Libra could never happen here, as our laws and structures prevent it.”

Can You Launder Money with Bitcoin? Debunking Myths

Q: One of your panels at DAS.SV tackles a controversial question: Can you launder money with Bitcoin? What’s your take on this?

JC chuckles before responding, “Let me put it this way—if criminals were smart, they wouldn’t use Bitcoin.” He explains that blockchain transparency makes it easier for law enforcement to trace transactions than cash or other traditional methods.

“We’ll have experts on stage debunking this myth with real-world examples,” he says confidently. “Bitcoin isn’t the problem—poorly regulated systems around it create vulnerabilities.”

The Global Perspective: Lessons from El Salvador

Q: How does El Salvador’s regulatory framework compare to global standards like MiCA in the EU or SEC policies in the U.S.?

JC: “MiCA is comprehensive but slow-moving—it tries to harmonize rules across 27 countries, which is no small feat. On the other hand, the SEC takes an enforcement-heavy approach that often stifles innovation,” he explains. Now, with the election of Donald Trump, things are changing, but the swings are massive and create an insatiable environment in which companies can’t plan too much ahead.

“In contrast, our framework is agile and tailored specifically for digital assets,” he continues. “We don’t try to fit new technologies into old boxes—we create new boxes.”

A Message for Regulators Worldwide

As our conversation winds down, I asked Reyes what advice he would give to regulators who are hesitant about embracing digital assets or at ‘stage zero,’ as he calls it.

His response is pragmatic: “Start with education and collaboration,” he says firmly. “Understand the technology before you regulate it. And most importantly, don’t stifle innovation—embrace it.” He pauses before adding: “Regulation isn’t about control; it’s about creating opportunities while protecting people. If we get this right, we can transform economies and lives.”

Before he heads off to his next hole on the golf course, I pose one final question: What message would you send to regulators hesitant about embracing digital assets? He leans back in his seat, gazing at the horizon. “The world is changing,” he says thoughtfully. “You can either lead that change or be left behind.”

🔗 Want to get first-hand information from Juan Carlos Reyes? Grab your tickets to DAS SV 2025 here: https://das.sv/#tickets

This interview has been edited for clarity and length.