El Salvador etched its name in history two years ago by accepting Bitcoin as a legal tender. Despite positive financial developments, a new study conducted by Jose Simeon Canas American University has revealed nuanced sentiments regarding the correlation between the adoption of Bitcoin and perceived improvements in personal well-being.
Mixed Feelings About Bitcoin Adoption
The survey shows that only 12% of El Salvador’s population used Bitcoin for transactions in 2023, a significant decrease from the 24.4% in 2022. This decline has raised questions about the sustainability of Bitcoin as a daily transaction method.
While 49.7% of users made one to three transactions, 20% made ten or more, showing various levels of crypto engagement.
Diverse Crypto Usage Patterns
In terms of transactions, grocery stores led with 22.9%, followed by supermarkets at 20.9%. Surprisingly, 15% reported using Bitcoin for transactions at veterinary clinics, highlighting the wide range of businesses incorporating crypto into their payment systems.
The survey also measured perceptions of personal development associated with Bitcoin adoption. While 6.8% of participants felt their family’s life had improved, a majority of 93.2% stated that Bitcoin had not made any positive change in their lives.
El Salvador’s Crypto Journey
El Salvador’s official approval of Bitcoin as a legal tender on June 9, 2021, sparked global debates and faced criticism from mainstream media and traditional financial institutions, especially during subsequent bear markets.
In another milestone, the Digital Assets Commission approved El Salvador’s Bitcoin-backed bonds, known as Volcano Bonds. These bonds will be accessible through Bitfinex Securities, a regulated segment of the cryptocurrency exchange Bitfinex.
In conclusion, El Salvador’s journey with Bitcoin presents a complex landscape. Although the country has taken significant steps in adopting the cryptocurrency, the survey reveals a wide range of emotions among the public. The mixed feelings towards Bitcoin adoption underscore the importance of continuous analysis and adaptation in navigating the evolving intersection of crypto and daily life in El Salvador.
