El Salvador’s Bitcoin Gamble: Only 12% Embrace Crypto In Daily Life Despite National Push

In El Salvador, Bitcoin’s journey as a legal tender continues to unfold with varying degrees of public reception and economic impact. A recent survey by the José Simeón Cañas Central American University sheds light on the crypto’s usage among Salvadorans.

The study, involving 1,280 participants and conducted in their homes in December 2023, reveals intriguing insights into the population’s interaction with BTC for daily transactions.

The survey indicates a decline in BTC purchase usage among Salvadorans, with 12% reporting they used the cryptocurrency for transactions in 2023, down from 24.4% in 2022.

Interestingly, the frequency of BTC usage for purchases is predominantly low, with nearly half of the users (49.7%) reporting using BTC only one to three times. The primary expenditures in BTC include groceries (22.9%) and supermarket items (20.9%), followed by payments at veterinary clinics (15%).

Bitcoin’s Impact On Salvadoran Economy: Perception And Reality

While a growing number of Salvadorans feel their family’s life has improved since the Bitcoin legal tender law, this number remains relatively small, rising from 3% in 2022 to 6.8% in 2023.

The perception of the overall economic improvement in the country is more significant, with 34.3% of respondents seeing a positive change in 2023. However, only a fraction (0.5%) attributes this improvement to BTC’s legalization.

The survey, which notably excludes questions about the Salvadoran government’s BTC investments, reflects a public sentiment against continued governmental expenditure on BTC.

77.1% of respondents expressed their desire for the government to halt spending public money on BTC. Despite this public opinion, the Salvadoran government has not slowed down its BTC investment strategy.

Bitcoin (BTC) price chart on TradingView.com
BTC price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com

El Salvador’s Bitcoin Strategy: Risks And Rewards

El Salvador’s bold move in the crypto world has seen its total Bitcoin holdings reach 2,798 BTC, valued at $131.3 million. Despite experiencing a significant loss in 2021, the government’s steadfast approach to buying BTC during market dips has resulted in a profit of over $10 million.

This resilience and strategic accumulation highlight the nation’s commitment to integrating Bitcoin into its economic framework. El Salvador is poised to launch its Volcano Bond in Q1 2024, aiming to raise $1 billion to support establishing the world’s first Bitcoin city and fund geothermal BTC mining projects.

Initially scheduled for 2022 but delayed, this bond received the green light from the Digital Assets Commission (CNAD) later in 2023, marking a significant step forward in the country’s crypto ambitions.

Featured image from Unsplash, Chart from TradingView

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