Bitcoin adoption falls to critical low in El Salvador
A recent survey reveals that Bitcoin (CRYPTO:BTC) usage in El Salvador has dropped significantly, with fewer than 10% of citizens using the cryptocurrency for transactions.
Despite President Nayib Bukele’s push for Bitcoin since its adoption as legal tender in 2021, only 7.5% of respondents in the “Country’s Path” survey, conducted by the Center for Citizen Studies, Disruptive Magazine, and Francisco Gavidia University, reported using Bitcoin.
This marks a decrease from last year’s 12% usage rate.
Local analysts criticise the low adoption, especially given the significant resources invested by the government to promote Bitcoin use, including a $30 nationwide airdrop through the Chivo wallet to incentivize citizens.
However, Bitcoin remains an unpopular choice, with only 1.3% of respondents considering it a key part of the country’s future.
In contrast, improving education and industry were identified as top priorities by most Salvadorans.
Despite the decline, President Bukele acknowledged in August that Bitcoin has functioned as a rebranding tool for El Salvador, helping attract investments and tourism.
He stated, “Bitcoin has served its purpose as a marketing strategy for the country, even if its everyday use remains limited.”
Interestingly, the decline in Bitcoin usage could work in El Salvador’s favor as the government pursues a financing deal with the International Monetary Fund (IMF).
The IMF has recommended narrowing the scope of the Bitcoin Law and improving oversight of its use, suggesting that reduced bitcoin reliance might align with broader economic goals.
According to analysts, while Bitcoin adoption remains minimal, the focus may shift to strengthening traditional sectors of the economy, a sentiment echoed by Salvadorans who prioritize education and industry improvements over cryptocurrency adoption.
At the time of writing, the Bitcoin (BTC) price was $67,278.51.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tokenization can transform US markets if Trump clears the way
ChatGPT Sets SHIB Price For December 1, 2024