Francisco Gavidia University (UFG) reveals that a mere 7.5% of citizens in El Salvador utilize Bitcoin (BTC) for transactions. This finding has stirred discussions about the viability and future role of Bitcoin in the country’s economy, particularly in light of its controversial adoption as legal tender in September 2021.
The survey, which was conducted at the end of September 2024, involved 1,224 respondents aged 18 and older, with a significant portion of participants in the 18-29 age bracket. Notably, over 71% of those surveyed lived in urban areas, and the majority were employed full-time.
The results showed that 92% of participants reported not using Bitcoin for transactions, with only 0.5% expressing uncertainty regarding the question. When asked about what should be the primary focus for the country’s future, a scant 1.3% responded that Bitcoin should be prioritized, indicating a strong preference for other areas, such as education and industrial development.
Despite the low adoption rate of Bitcoin, the survey respondents displayed high approval ratings for President Nayib Bukele. On a scale from 0 (poor) to 10 (excellent), Bukele’s performance received an average score of 8.43, and his government’s rating was 7.49. This positive sentiment extends to the nation’s overall financial outlook, with around 80% of respondents feeling either neutral or optimistic about El Salvador’s economic future.
These ratings are particularly interesting given the prevailing indifference toward Bitcoin, suggesting that while citizens may support their president, they do not necessarily align with his cryptocurrency agenda.
The survey’s results indicate a noticeable decline in Bitcoin adoption among Salvadorans. Previous studies had suggested that adoption rates hovered around 20% in 2021 and 2022. In January 2024, a report from the José Simeón Cañas Central American University (UCA) noted adoption rates above 10%, yet the recent findings signal a significant downturn. The media outlet Criptonoticias pointed out that there seems to be little expectation for an uptick in Bitcoin interest in the future.
President Bukele has acknowledged the lower-than-anticipated adoption rates since Bitcoin was declared legal tender. His initial vision for broader acceptance has not materialized as expected, which raises questions about the sustainability of Bitcoin’s role in El Salvador’s economy.
Interestingly, the decline in Bitcoin adoption appears to have influenced El Salvador’s relations with the International Monetary Fund (IMF). Initially skeptical about the nation’s cryptocurrency initiatives, the IMF has recently noted a lack of “financial risks” associated with Bitcoin in El Salvador. This shift in perception may reflect a recognition that lower adoption rates could mitigate potential economic volatility tied to cryptocurrency use.
As El Salvador navigates its unique position in the cryptocurrency landscape, the latest survey highlights a stark reality: while the government may advocate for Bitcoin, the public’s response has been tepid at best. With only 7.5% of citizens engaging with the cryptocurrency, and most preferring other areas of development, the nation faces challenges in fulfilling the ambitious vision set forth by President Bukele.
The potential for Bitcoin to thrive in El Salvador hinges on a variety of factors, including effective education about cryptocurrency, improvements in the financial infrastructure, and a clear regulatory environment that inspires confidence. Moving forward, it remains to be seen whether the country can adapt its strategies to foster greater adoption or if Bitcoin will remain a niche aspect of its economic landscape.
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