Two years of legal Bitcoin in El Salvador have been completed: progress and pending accounts

Two years of legal Bitcoin in El Salvador have been completed: progress and pending accounts

Bitcointhe president’s bet Nayib Bukele to revitalize the economy of The Savior, celebrates its second anniversary as legal tender in the Central American country. However, its adoption has been limited and has failed to gain the trust of the population.

On September 7, 2021, the bitcoin became legal tender in El Salvador under the initiative of the president bukele. Its main objective was to reduce the costs of remittances from abroad and promote banking of the Salvadoran population, especially the 70% who did not have access to the financial system.

Two years later, the results they have not been what was expected. According to the independent economist Carlos Acevedo, “the objectives set have not been met, since people barely uses Bitcoin and he doesn’t trust him much.” The former president of the Salvadoran Central Reserve Bank adds that the experimentor has faced a “crypto winter“.

Despite President Bukele’s high popularity due to his efforts in the fight against gangs, has failed to convince his compatriots about the benefits of Bitcoin. According to a survey by the Centroamerican University (UCA), 71% of Salvadorans believe that cryptocurrency has not improved their economic situation familiar at all.

Bitcoin: progress and pending accounts

In the streets of San Salvador, There is a general rejection of this currency. Some consider that it offers no benefits and that its volatility makes it a bad investment.

President Bukele hoped that family remittances, whichThey represent 21% of El Salvador’s GDP, would arrive in the form of cryptocurrencies. However, only the 1% of the 4.71 billion dollars in family remittances sent from abroad arrived in the country through the “Chivo Wallet” digital wallet created by the government, according to the Central Reserve Bank.

Independent economist Julia Martínez points out that people do not trust a cryptocurrency whose value constantly fluctuates, and prefer to use cash.

When bukele introduced the Bitcoin In 2021, he faced criticism from multilateral organizations such as el World Bank and the International Monetary Fund due to the high volatility of the cryptocurrency.

For now though cannot be considered an absolute failuresince the price of Bitcoin can change, The current reality shows that its adoption in El Salvador has not been as successful as expected. The current price of Bitcoin is just over $25,500.

The government of El Salvador has announced that it has acquired 2,381 Bitcoins, but has not revealed the amount of money invested in these purchases. The intention to purchase was also mentioned one Bitcoin per day starting November 17, 2022although it has not been confirmed if this has been carried out.

The independent economist Cesar Villalona explains that the Bitcoin It does not have a significant role in the local economy, since in El Salvador, everything is handled in dollars, including salaries, services and purchases.

However, some like José Francisco Ayala, a 38-year-old YouTuber, believe that the use of Bitcoin is a matter of learning and adapting to technology. Consider that as the population becomes more familiar with this cryptocurrency, its adoption could increase in the future.

Source: Ambito

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