Key Takeaways:
- The researchers also discovered that Bitcoin is gaining traction in El Salvador when compared to other payment methods.
- The study, which polled adults from 1,800 households in El Salvador, sought to assess BTC adoption in the country following the passage of the Bitcoin Law.
- Users who have installed the government-backed Chivo Wallet have “reduced their use of cash by 10%, while their net use of debit cards has decreased by 11%,”
According to a study conducted by the National Bureau of Economic Research (NBER), months after Bitcoin (BTC) became legal tender in El Salvador, 20% of businesses have begun to accept BTC as a payment method.
The study, which polled 1,800 El Salvadoran households, aimed to measure BTC acceptance in the country following the enactment of the Bitcoin Law. According to the study, Bitcoin is gaining traction in comparison to traditional payment methods. Users who have downloaded the government-backed Chivo Wallet have “decreased their use of cash by 10%, while their net use of debit cards has decreased by 11%,” according to the report.
Aside from that, because El Salvador’s Bitcoin Law requires economic agents to accept BTC, the study also polled survey participants who identified as business owners and employees familiar with company payment methods.
Within this group, 20% said their company or place of work accepts Bitcoin, while only 25% accept credit and debit cards. Furthermore, “11.4 percent of enterprises have positive Bitcoin sales,” according to the report. The researchers also discovered that 71% of BTC sales are turned into dollars and then withdrawn. Furthermore, 17% of sales are converted into dollars and saved in the Chivo Wallet. Meanwhile, 13% of users have kept their BTC within the Chivo app.
Result of the implementation of the Bitcoin Law, an Italian couple attempted a 45-day voyage to El Salvador using only BTC as payment. Many businesses, including McDonald’s and Starbucks, already accept Bitcoin, according to the pair. They did, however, come across contractors who were unaware of cryptocurrencies.
Meanwhile, Bitcoin has recently become legal tender in the Central African Republic. As a result, residents of the country are legally permitted to use BTC in the same way that they use the country’s franc. Aside from that, the African country established a regulatory framework for cryptocurrency use.
Pro-Bitcoin Decisions in El Salvador
El Salvador made Bitcoin (BTC) legal tender on September 7, 2021, more than four months ago. Bitcoiners around the world have been watching with bated breath as El Salvador’s president, Nayib Bukele, attempts to “orange-pill” the entire country.
The president buys dips on a regular basis, has promised a low-tax Bitcoin “Citadel” in the form of Bitcoin City, and is investigating renewable energy BTC mining using volcanoes. Bitcoin is accepted everywhere in San Salvador, from McDonald’s to Starbucks to mom-and-pop shops. Most vendors in El Zonte, also known as “Bitcoin Beach” and the birthplace of the Bitcoin Law, advertise that they accept BTC. Off the beaten path, however, Bitcoin is incompletely understood and sometimes misunderstood as the state-sponsored wallet, Chivo Wallet.
