In a study conducted by the National Bureau of Economic Research (NBER) found that the acceptance and use of Bitcoin (BTC) in El Salvador has found a point of failure.
How?
Here are the details of the study:
More than 60% of respondents have misused the government -introduced Chivo bitcoin wallet after they got a $ 30 bonus.
While 89% of El Salvadorans admitted to never receiving money sent through Chivo, but only 3% of respondents received it in bitcoin.
90% of respondents were found to have never paid taxes using bitcoin.
60% of the country’s citizens do not download Chivo wallets even though the majority have smartphone access and internet connection.
Arguably the majority of El Salvador’s population has never used the Chivo ATMs provided throughout the city.
Here it can be concluded that the use of cash, including credit and debit cards still shows no change even though the people of El Salvador own Chivo wallets.
As of April, 80% of companies in El Salvador have yet to receive BTC despite Bitcoin Law ‘forcing’ them to do so.
71% of those who reported sales in bitcoin were more comfortable using fiat units, the US dollar versus BTC.
For the record, El Salvador officially used BTC starting September 2021. But to date the efforts of the Nayib Bukele administration have not shown any positive development.
Not sure where the mistake is. Perhaps the revelation about the importance of cryptocurrencies among the country’s population is still not widespread.
What do you think? Are you already expecting this or does El Salvador actually need time to get comfortable with BTC?
