El Salvador made history by adopting Bitcoin as legal tender two years ago. Despite positive financial developments, a new study by Jose Simeon Canas American University reveals a nuanced sentiment regarding the correlation between Bitcoin adoption and perceived personal welfare improvements.
A survey indicates a significant drop in Bitcoin usage for transactions in 2023, with only 12% of the population using it, compared to 24.4% in 2022, raising questions about the cryptocurrency’s sustainability as a daily transaction method.
While 49.7% of users conducted one to three transactions, 20% engaged in ten or more, showing varied levels of crypto participation. Grocery stores led in transaction volume with 22.9%, followed by supermarkets at 20.9%, highlighting diverse businesses incorporating Bitcoin into their payment systems, including 15% at veterinary clinics.
The survey also measured perceptions of personal improvement linked to Bitcoin adoption. Only 6.8% of participants felt their family’s life had improved, while a majority of 93.2% reported no positive change due to Bitcoin.
El Salvador’s official endorsement of Bitcoin on June 9, 2021, sparked global debates and criticism from mainstream media and traditional financial institutions, especially during subsequent bear markets. The Digital Assets Commission’s approval of Bitcoin-backed “Volcano Bonds,” accessible via Bitfinex Securities, marks another milestone. Overall, El Salvador’s Bitcoin journey presents a complex landscape, with the survey revealing a wide range of public sentiments, emphasizing the need for ongoing analysis and adaptation at the intersection of crypto and daily life.