Just over a year after El Salvador became the first nation in the world to adopt Bitcoin (BTC) as legal tenderthe policy seems unpopular with most locals.
Barrons reported on Oct. 18 that data from the University of Central America (UCA) suggests that around 77% of El Salvador residents believe Bitcoin adoption has failed.
Incredibly, despite the government’s efforts to popularize Bitcoin, 75.6% of people said they had never used digital assets in 2022, when the digital asset market saw a significant decline.
Additionally, as President Nayib Bukele continues to hoard bitcoin, 77% of respondents believe the government should stop using public funds to purchase bitcoin.
“Is the government’s most unpopular measure [Bitcoin legal tender]the most criticized and frowned upon,” said UCA rector Andreu Oliva.
Less crypto is used in remittances.
One of El Salvador’s objectives in establishing this regulation was to make it easier for remittances to bypass established banks. Notably, remittances are at the heart of El Salvador’s economy, accounting for almost a quarter of its gross domestic product (GDP).
In September this year, data from the Central Bank of El Salvador revealed that less than 2% of all remittances used cryptocurrencies.
El Salvador invested in Bitcoin at the peak of the asset’s bull run, which peaked in October last year at around $69,000. However, with Bitcoin’s significant decline in 2022, El Salvador suffered losses and President Bukele remains stubborn in the face of growing calls for a policy reversal.
According to a September 7, 2022 Finbold study, the country’s bitcoin strategy had yet to take off, despite the government’s efforts to portray the nation as a global crypto hub.
At the same time, El Salvador’s adoption of Bitcoin has prompted other countries in the region to follow suit. However, the adoption of Bitcoin as legal tender has ceased to be discussed in other South American countries.