Low Bitcoin Usage in El Salvador despite Legal Tender Status
A recent poll conducted by Central American University revealed that the majority of people in El Salvador did not use bitcoin as a form of payment in 2021, despite the cryptocurrency being made legal tender in the country. The government’s decision to introduce bitcoin alongside the US dollar aimed to reduce remittance costs and encourage Salvadorans to open bank accounts.
The poll, which surveyed 1,280 individuals from December 9 to 22, found that 85 percent of respondents did not use bitcoin for any transactions last year. Additionally, three percent of those surveyed had never used the digital currency at all.
Despite this lack of usage, 77.8 percent of participants stated that their family’s financial situation remained unchanged with bitcoin as legal tender.
Government’s Bitcoin Holdings and Recent Price Surge
The government of El Salvador has disclosed that it owns 2,381 bitcoins, although the purchase price remains undisclosed. Meanwhile, the price of bitcoin reached a 22-month high of $47,914 per unit after a false post on social media claimed that the US Securities and Exchange Commission had approved bitcoin exchange-traded funds for listing on major stock markets.
Hot Take: El Salvador’s Bitcoin Adoption Challenges
The low usage of bitcoin in El Salvador despite its legal tender status raises questions about the effectiveness of its adoption strategy. While the government aimed to promote financial inclusion and reduce remittance costs through bitcoin integration, it appears that a significant portion of the population has not embraced or utilized the digital currency. This highlights the importance of education and awareness campaigns to encourage broader acceptance and usage of cryptocurrencies in countries adopting similar initiatives.
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