Reading time: ~2 m
On September 7, 2021, the most capitalized cryptocurrency, Bitcoin (BTC), officially became the national currency of El Salvador, along with the US dollar. The editors of BeInCrypto decided to find out whether the country’s authorities managed to make the coin a truly popular payment instrument
In this article:
- Let El Salvador legalize Bitcoin
- Not everything is so smooth
- How common are crypto payments in El Salvador?
- El Salvador Crypto Community
Let El Salvador legalize Bitcoin
El Salvador became the first country in the world to legalize bitcoin. The authorities began preparations for the introduction of cryptocurrency into the economy in the summer of 2021. By September, regulators had formed a legal framework for the legalization of bitcoin and introduced an infrastructure for working with digital assets. Here are the steps taken by the authorities:
- We launched a national crypto-fiat wallet Chivo and organized the distribution of cryptocurrency for $ 30 to users of the application.
- Installed on the streets of El Salvador crypto-scooters.
- We organized points for consultations of citizens on working with cryptocurrencies.
In parallel, the authorities of El Salvador began to buy bitcoins. Earlier, experts shared with the editors of BeInCrypto their opinion on what will happen to the country’s economy if BTC continues to fall.
Already today, the country’s authorities are fixing the favorable consequences of the decision to legalize cryptocurrencies. Studies show that after the recognition of bitcoin as a legal financial instrument, the level of tourism in El Salvador increased by 30%. According to market participants, the interest of foreigners in the country will help accelerate its development.
Some of the experts with whom the editors of BeInCrypto managed to talk also drew attention to the great potential of El Salvador’s movement along the path of development of crypto initiatives. For example, Kick Ecosystem CEO Anti Danilevsky believes that the country’s citizens will see the benefits of the president’s decisions at the moment when the next cycle of growth of the digital asset market begins.
Not everything is so smooth
In early 2022, analysts from the Central American University named after Jose Simeon Cañas found out that despite all attempts to popularize bitcoin in El Salvador, less than a third of the country’s citizens trust the cryptocurrency. Later, in April 2022, researchers from the National Bureau of Economic Research concluded that the authorities failed to achieve a mass adaptation of BTC. This is indicated by the results of a survey of local residents. Here are a couple of excerpts from the study:
- 32% of Salvadoran citizens do not know what Chivo is.
- 60% of Salvadorans downloaded Chivo only to get and spend the promised $30.
- 80% of Salvador’s business has abandoned crypto payments.
Excerpts from a study by the National Bureau of Economic Research
Despite the lack of enthusiasm for cryptocurrencies from local residents, the Salvadoran authorities continued to move along the path of developing crypto initiatives.
How common are crypto payments in El Salvador?
Despite the negative results of a number of studies on the real level of cryptocurrency distribution in El Salvador, posts by bloggers and other network users suggest that bitcoin owners, nevertheless, have many offers available.
Analysis of posts from social networks showed that BTC in El Salvador can really pay for a lot. For example, the owner of a cryptocurrency can pay for a cup of coffee in Starbucks with bitcoin.
Buying coffee with bitcoins in El Salvador. Source: Twitter
Lovers of alcoholic beverages can also find suitable offers. Here, for example, a young man buys beer for bitcoins:
Unfortunately, the network also has complaints about a small number of cryptocurrency acceptance points in El Salvador. For example, the author of the YouTube channel TheLifeOfJord talks about the fact that not everywhere where there are crypto requisitions, you can pay with bitcoins.
It can be assumed that in the future, against the background of a clear course of the country’s authorities on the development of crypto initiatives, more proposals will be available to the participants of the crypto community. So far, it is almost impossible to survive in El Salvador, completely without dollars.
See also: What will be the new maximum of bitcoin – the opinions of market participants
El Salvador Crypto Community
Against the background of the legalization of bitcoin, many cryptobloggers and other representatives moved to El Salvadorriptosociety. Many use local crypto innovations to create content.
About the life of a member of the crypto community in El Salvador tell, for example, the authors of the Twitter channel Nicki & James in El Salvador – Nicky and James. You can also learn a lot about the life of the cryptocurrency owner in the country from the Twitter blogger Stacey Hilbert.
All information contained on our website is published in good faith and objectivity and for informational purposes only. The reader is solely responsible for any actions taken on the basis of information received on our website.
#survive #Salvador #bitcoins #wallet