Bitcoin Usage Declines Among Salvadorans
A recent survey conducted by the José Simeón Cañas Central American University reveals that the usage of Bitcoin for transactions among Salvadorans has decreased. In 2023, only 12% of participants reported using the cryptocurrency for transactions, compared to 24.4% in 2022. Interestingly, most users only used BTC for purchases one to three times. The primary expenditures in BTC were groceries, supermarket items, and payments at veterinary clinics.
Perception vs. Reality: Bitcoin’s Impact on the Salvadoran Economy
While a small percentage of Salvadorans feel that their family’s life has improved since Bitcoin became legal tender, the overall perception of economic improvement in the country is more significant. However, only 0.5% attribute this improvement to BTC’s legalization. The survey also reflects public sentiment against continued government expenditure on BTC, with 77.1% of respondents expressing their desire for the government to halt spending public money on it.
El Salvador’s Bitcoin Strategy: Risks and Rewards
El Salvador’s commitment to integrating Bitcoin into its economic framework is evident through its strategic accumulation of BTC. Despite experiencing losses in 2021, the government’s approach of buying BTC during market dips has resulted in a profit of over $10 million. The nation is also set to launch its Volcano Bond in Q1 2024, aiming to raise $1 billion to support the establishment of the world’s first Bitcoin city and fund geothermal BTC mining projects.
Hot Take: El Salvador Continues to Embrace Bitcoin
Despite a decline in Bitcoin usage for transactions among Salvadorans and public sentiment against government expenditure on BTC, El Salvador remains committed to its crypto ambitions. The government’s strategic accumulation of BTC and the upcoming launch of the Volcano Bond demonstrate its dedication to integrating Bitcoin into the country’s economy. As El Salvador continues on this path, it will be interesting to see how its crypto journey unfolds and whether it can achieve its goals.
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