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El Salvador’s Bitcoin Wager: Despite State Push, Only 12 Percent Accept Cryptocurrency in Daily Life

In El Salvador, the journey of Bitcoin as legal tender continues to unfold with varying degrees of public acceptance and economic impact. A recent survey by the Universidad Centroamericana José Simón Cañas reveals the use of cryptocurrency among Salvadorans.

The study, conducted in December 2023 in the homes of 1,280 participants, revealed interesting insights into how people interact with BTC in their daily transactions.

The survey revealed a decline in the use of BTC purchases among Salvadorans, with 12% saying they used the cryptocurrency for transactions in 2023, down from 24.4% in 2022.Mining Miner

Interestingly, the frequency of using BTC to make purchases is generally low, with nearly half of users (49.7%) reporting using BTC only 1 to 3 times. The main expenditures for Bitcoin include groceries (22.9%) and supermarket goods (20.9%), followed by payments for veterinary clinics (15%).

Bitcoin’s Impact on El Salvador’s Economy: Perception vs. Reality

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

Perceptions of the country’s overall economic improvement are even more pronounced, with 34.3% of respondents believing that positive changes will occur in 2023. However, only a small percentage (0.5%) attributed this improvement to the legalization of Bitcoin.

The survey specifically excluded questions about the government of El Salvador’s bitcoin investments, reflecting public sentiment about continued government spending on bitcoin.Bitmain Miner

77.1 percent of respondents said they want the government to stop spending public money on Bitcoin. Despite public opinion, the Salvadoran government has not slowed down its bitcoin investment strategy.

BTC price is trading sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com

El Salvador’s Bitcoin Strategy: the Risks and Rewards

El Salvador’s bold move into the crypto world has brought its total bitcoin holdings to 2,798 BTC, valued at $131.3 million. Despite experiencing significant losses in 2021, the government steadfastly purchased BTC during the market’s decline, resulting in over $10 million in profits.

This resilience and strategic accumulation underscores the country’s commitment to incorporating Bitcoin into its economic framework. El Salvador is poised to launch a volcano bond in the first quarter of 2024, aiming to raise $1 billion to support the creation of the world’s first Bitcoin city and fund geothermal BTC mining projects.

El Salvador Bitcoin Volcano Bond to be Issued in Q1 2024

The bond was originally scheduled to be issued in 2022, but was later delayed and approved by the Commission for Digital Assets (CNAD) later in 2023, marking a significant step forward in the country’s cryptocurrency ambitions.



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