Poll Shows El Salvador's Failure in Bitcoin Experiment

Poll Shows El Salvador’s Failure in Bitcoin Experiment

For several months, the use of the first cryptocurrency in El Salvador did not take on a mass character. This is evidenced by the data of a representative survey American organization National Bureau of Economic Research.

Law recognizing bitcoin as an official means of payment in the country entered into force on September 7, 2021. Citizens now have access to a state-supported crypto wallet Chivo.

The study showed that 60% of those who downloaded the application did not use it after receiving it $30 signup bonus.

95% of users have never paid taxes in cryptocurrency through Chivo, and 89% have not received money transfers through the app.

Data: National Bureau of Economic Research.

More than half of the citizens did not use Chivo ATMs.

Despite the fact that the authorities obliged the business to accept payment in bitcoin, only 20% of firms added this option. Of those who did, 88% prefer to convert funds to dollars. 12% of such companies store cryptocurrency.

“We have documented that, despite the government’s “big push”and a significant proportion of people downloading Chivo, the use of bitcoin for everyday transactions is low and concentrated among the educated, young and male population covered by banking services,” the researchers said.

No other country has yet followed the example of El Salvador in the legalization of cryptocurrency. However, in neighboring Honduras, the authorities of the Próspera economic zone recognize bitcoin as legal tender.

Recall that the decision of the authorities of El Salvador has repeatedly criticized International Monetary Fund. In January, the institution recommended depriving bitcoin of the status of legal tender.

In April, the former head of the country’s central bank, Carlos Acevedo, declared that the legalization of cryptocurrency “killed” El Salvador’s relationship with the fund.