El Salvador’s Bitcoin Strategy Has “Failed,” According to 70% of Surveyed Citizens


Approximately three-quarters of Salvadorans questioned saw the adoption of bitcoin (BTC) as a failure.

according to a study conducted by the University of Central America (UCA) and cited by Barron, 77% of users believe the acceptance of BTC as legal cash alongside the dollar in 2021 to be “a disaster.” 75.6% of respondents said that they had not utilized crypto at all in 2022.

Andreu Oliva, a rector of UCA, was cited as stating, in response to the findings of the study: Bitcoin is the government’s most hated, most criticized, and most disliked metric.

In addition, 77% of Salvadorans believe that President Nayib Bukele “should not continue to use public funds to purchase Bitcoin.”

In July of this year, Bukele claimed that the government had purchased BTC 80 at a price of USD 19,000 per coin, marking yet another “dip” purchase. It seems that Bukele has approved the acquisition of around 2,381 BTC with over $105 million in public cash.

The nation approved Bitcoin as legal money in September 2021. Barron’s noted that Bukele intended to promote crypto transfers from approximately three million Salvadorans living abroad to their relatives in the country, thereby saving on bank fees. This was a strategic decision, as remittances account for more than a quarter of El Salvador’s gross domestic product.

Yet, as reported in August of this year, a study quoted Central Reserve Bank statistics indicating that less than 2% of remittances to El Salvador use the state-operated Chivo bitcoin app and wallet. In addition, less than a year after their introduction, bitcoin ATMs in the country were “empty.” However, according to the authorities, the app remains popular among many individuals.

In April, the American National Bureau of Economic Research released a poll indicating that 20% of Salvadorans continued to utilize the Chivo Wallet.

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