According to a survey conducted by José Simeón Cañas Central American University in El Salvador, 12% of the local population used Bitcoin (BTC) at least once to pay for goods and services in 2023. The survey, conducted with 1,280 respondents, shows a decline compared to the previous year. In 2022, 24.4% of the population made a purchase with Bitcoin.
Bitcoin Used for Goods and Services: 2023 Survey Results
Among those surveyed, almost half (49.7%) made a Bitcoin transaction one to three times, while 20% used it 10 or more times. The main expenses made with Bitcoin were for groceries (22.9%) and supermarkets (20.9%), followed by veterinary clinics (15%).
The survey also revealed changes in perception regarding the impact of Bitcoin as legal tender. In 2023, 6.8% of respondents felt that their family’s life improved due to Bitcoin being legal tender, a 3.8% increase from the previous year.
However, more than a third (34.3%) believed that the overall economic situation in the country improved. This was primarily attributed to a decline in crime (24.3%), with only 0.5% associating Bitcoin with economic improvement.
In 2022, only 24.4% of respondents reported using BTC as a means of payment since it became legal tender. Despite government efforts to promote Bitcoin adoption, 95% of respondents stated that their lives “stayed the same” or “have gotten worse” since then.
The President of El Salvador, Nayib Bukele, has been a vocal supporter of Bitcoin and has initiated various Bitcoin-related projects in the country.
A Study Reveals Challenges and Contradictions in El Salvador’s Bitcoin Adoption
In 2021, El Salvador passed the “Bitcoin Law,” making the cryptocurrency legal tender. However, a study revealed several challenges and contradictions in Bitcoin adoption. The primary demographic eager to adopt BTC as a currency is young, educated men with bank accounts. Privacy and transparency concerns were identified as significant barriers to adoption, which is surprising given that decentralized currencies aim to address these concerns.
The study also found that initial adoption costs were substantial but benefits increased as more people adopted the technology. Resistance from businesses was identified as a factor hindering adoption.
Contrary to some hypotheses, the study found that the already wealthy and banked were the primary users of crypto in El Salvador. This challenges the notion that cryptocurrencies inherently serve the interests of an underserved population.
The study also pointed out that Bitcoin’s lack of privacy contradicted claims made by its supporters. On the other hand, law enforcement authorities adapted to using other checks and balances to track and monitor Bitcoin users.
Despite these challenges, the government of El Salvador continues to bolster its efforts to increase crypto investment within the nation.
Hot Take: 12% of El Salvador’s Population Used Bitcoin for Goods and Services in 2023
A recent survey conducted in El Salvador revealed that 12% of the local population utilized Bitcoin for purchasing goods and services in 2023. This marks a decline compared to the previous year when 24.4% of the population made purchases with Bitcoin. Among those surveyed, nearly half made one to three Bitcoin transactions, with groceries and supermarkets being the main expenditures. The survey also highlighted changes in perception regarding Bitcoin’s impact as legal tender, with some respondents reporting improvements in their family’s lives. However, concerns about overall economic conditions persisted among a significant portion of the population. Despite these challenges, El Salvador’s government, led by President Nayib Bukele, remains committed to promoting Bitcoin adoption and expanding crypto investment in the country.
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