Despite the pioneering move by El Salvador to adopt Bitcoin as legal tender, the majority of Salvadorans have not embraced the cryptocurrency for everyday transactions. A recent survey conducted by the San Salvador University Francisco Gavidia on October 10 revealed that a significant 92% of Salvadorans do not use Bitcoin for transactions.
The survey reached 1,224 adult citizens of El Salvador, delving into various political and economic issues impacting their daily lives. Only 7.5% of the respondents reported using Bitcoin to make transactions, with a negligible 0.5% opting not to respond to the question on cryptocurrency usage. This data indicates a slight decline in Bitcoin utilization compared to previous years, as a similar survey by the University of Central America’s public opinion institute in 2023 found that 88% of the population did not use Bitcoin for transactions.
Public Sentiment and National Priorities
While the adoption of Bitcoin has not gained widespread popularity for transactions, approximately 60% of Salvadorans believe that the country is on the right path and strongly approve of President Nayib Bukele’s leadership. However, when it comes to the future focus of the nation, only 1.3% of those surveyed believe that Bitcoin should be the primary emphasis. The majority opinion suggests that education and industry deserve more attention as key areas for national development.
Bukele’s Policies and Their Impact
President Nayib Bukele, first elected in June 2019, has been a controversial yet popular figure. He is noted for his rigorous crackdown on organized criminal gangs, a move that led to the incarceration of about 1% of the country’s population. This policy has garnered broad support from Salvadorans, despite criticism from human rights groups concerning the lack of due process and alleged mistreatment of detainees.
In September 2021, Bukele initiated the adoption of Bitcoin as legal tender, a global first, aiming to attract foreign investment through innovative initiatives like Bitcoin “Freedom” visas and the ambitious plan for a Bitcoin City. Re-elected for a second term in June, Bukele pledged to position El Salvador as a world leader in various sectors, including cryptocurrency.
| Aspect | Percentage |
|---|---|
| Use Bitcoin for Transactions | 7.5% |
| Do Not Use Bitcoin | 92% |
| Undecided/No Response | 0.5% |
| Support for President Bukele | 60% |
| View Bitcoin as Future Focus | 1.3% |
The limited uptake of Bitcoin among Salvadorans reflects broader uncertainties and practical challenges surrounding cryptocurrency use in daily transactions. Factors contributing to this reluctance may include volatility in Bitcoin’s value, lack of understanding or trust in digital currencies, and the absence of a robust infrastructure to support widespread crypto transactions.
Despite these challenges, President Bukele’s forward-looking crypto policies could potentially reshape El Salvador’s economic landscape by attracting tech-savvy investors and positioning the country as a hub for digital innovation. However, balancing these ambitions with the immediate needs and preferences of Salvadorans, particularly focusing on education and traditional industries, will be crucial for sustained national progress.
El Salvador’s journey with Bitcoin as legal tender remains a watched experiment in national adoption of cryptocurrency. While the current level of engagement is low among the populace, the strategic initiatives by President Bukele’s administration may set the stage for future changes in how digital currencies are perceived and used across the country. The coming years will be critical in determining whether Bitcoin can move from a niche financial tool to a mainstream medium of exchange in El Salvador.
Featured image credit: icon ade via Vecteezy
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