Local and foreign entrepreneurs agree that the use of Bitcoin is “very unusual” and that its use is minimal in El Salvador. So far, more than 100 companies have accepted BTC as a means of payment in that city, thanks to the spread of entrepreneurs. Despite the pro-Bitcoin push, El Salvador’s economy is stagnant and could have one of the slowest growth in Central America.
Prior to the presidential elections in El Salvador, local and foreign entrepreneurs admit that the use of Bitcoin (almost three years after the Bitcoin Law) is “very unusual.” Added to its low adoption, they admit that inflation has impacted the price of basic basket products.
Given the low adoption of Bitcoin, foreign entrepreneurs seek to encourage the use of BTC among local businessmen and foreign entrepreneurs in the town of Berlin (Usulután), El Salvador. So far, more than 100 companies have accepted BTC as a means of payment in that city.
Bitcoin Use in El Salvador Continues to Fall
After the presidential elections, El Salvador would resume the construction of the “Bitcoin City”. The country’s vice president, Félix Ulloa, detailed that they will resume plans to build the tax-free paradise and launch Bitcoin bonds after Bukele’s recent offensive against gangs practically guaranteed his re-election.
Nicki, a former mortgage advisor, explained to Reuters that “Adoption is huge for us – it is what we consider important and how bitcoin will win. “Bukele put the flag on the ground.”
The low level of optimism for Bitcoin in El Salvador seems to be the constant, as shown by the latest data from the Central Reserve Bank. Remittances in cryptocurrencies fell 34.5% in 2023, reaching the sum of 82.93 million dollars.
A media outlet reported that cryptocurrency remittances in 2023 contrast with the 126.72 million dollars recorded in 2022. In addition, this marked decline in currencies transferred through digital wallets represented a difference of 43.79 million dollars less, according to official data presented.
The significant decline in remittances received through cryptocurrency wallets reflects the challenges and changing dynamics in El Salvador’s economic ecosystem, as well as the complexities associated with the widespread adoption and everyday use of cryptocurrencies.
According to Reuters, despite the pro-Bitcoin push, El Salvador’s economy is stagnant and could have one of the slowest growths in Central America, since public debt amounted to $25 billion until last year.
The analysis shows that Bitcoin has not contributed “really anything” to the economy of El Salvador, nor significant benefits, although the government insists that skepticism “is being reversed.”
Only Foreign Tourists Visiting El Salvador Use Bitcoin
However, a large part of Salvadorans would “ignore” Bitcoin, since they would base their daily economy on cash. They seem more concerned about housing costs and basic food items. Meanwhile, tourists maintain that BTC is only transacted with tourists who “are visiting. It was not executed well. “The things that were supposed to happen just didn’t happen.”
The latest report from the University Institute of Public Opinion showed that only 16.3% of the population of El Salvador. The above believes that the economy has improved in 2023 due to the implementation of Bitcoin as legal tender. Even 18.6% believe that the country’s situation has “worsened” due to the adoption of BTC.
Even the José Simeón Cañas Central American University (UCA) stated that despite the progress in Bitcoin adoption in the country, the general feeling is one of little optimism. 52.9% believe that the country’s economy “remains the same” as always.
By Audy Castaneda
