El Salvador’s Risk with Bitcoin: Only 12% Incorporate Crypto into Daily Life Despite National Promotion, Reveals Report

1. Bitcoin Usage Among Salvadorans:

  • A survey by José Simeón Cañas Central American University reveals insights into Bitcoin usage in El Salvador.
  • 12% of Salvadorans used BTC for transactions in 2023, down from 24.4% in 2022.
  • Nearly half of the users (49.7%) used BTC for purchases only one to three times.
  • Primary BTC expenditures include groceries (22.9%), supermarket items (20.9%), and payments at veterinary clinics (15%).

2. Bitcoin’s Impact on Salvadoran Economy:

  • Only a small increase in those feeling their family’s life improved since BTC legalization, from 3% in 2022 to 6.8% in 2023.
  • 34.3% perceive a positive economic change in the country in 2023.
  • Only 0.5% attribute this improvement to BTC’s legalization.
  • Public sentiment against government expenditure on BTC, with 77.1% wanting the government to halt spending on BTC.

3. El Salvador’s Bitcoin Strategy: Risks And Rewards:

  • El Salvador holds 2,798 BTC valued at $131.3 million despite facing losses in 2021.
  • Government’s strategic accumulation during market dips resulted in a profit of over $10 million.
  • The nation plans to launch the Volcano Bond in Q1 2024 to raise $1 billion for the world’s first Bitcoin city and geothermal BTC mining projects.
  • Despite public opinion against it, the Salvadoran government continues its BTC investment strategy.

4. Government’s BTC Investments:

  • The survey does not include questions about the government’s BTC investments.
  • Public sentiment is against continued governmental expenditure on BTC, with 77.1% expressing the desire for the government to stop spending public money on BTC.

5. Future Developments:

  • El Salvador’s government remains committed to integrating Bitcoin into its economic framework.
  • The launch of the Volcano Bond in Q1 2024 is a significant step toward the country’s crypto ambitions.

Note: The blog post also mentions the government’s BTC holdings and its plan to launch the Volcano Bond, highlighting risks and rewards associated with El Salvador’s Bitcoin strategy.

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