Bitcoin Failure – 80% of Salvadorans Believe President’s Cryptocurrency Program is a Disaster

Bitcoin took the internet by storm in 2021 when South America’s smallest country, El Salvador, announced that it would make cryptocurrencies legal tender.

The plan was first made public via a video of Salvadoran President Naive Bukele at the 2021 Bitcoin Conference in Miami, where he shared the country’s plans to adopt a bill to make Bitcoin. Legal tender.

Bukele said the move is meant to make it easier for people living abroad to send money to relatives in their home countries.

June 9, 2021, Bitcoin law It was adopted by the country’s Legislative Assembly as 62 out of 84 MPs voted in favor.

The government then announced that it would set up $150 million in funding to support approved legal actions. Officials even say they will offer $30 in BTC to individuals who sign up for an e-wallet called “Chivo.”

However, more than a year into the country’s historic adoption of cryptocurrencies, things have not turned out the way the government of El Salvador hoped.

Bitcoin adoption failed on all fronts

According to a research study conducted by the University of Central America (UCA), about 77% of Salvadorans believe that the adoption of Bitcoin as legal tender in their country has been massive. Failure.

Furthermore, 75.6% of people revealed that they have not used cryptocurrencies this year. Such a development is surprising given the efforts of Bukele’s management to promote the digital asset class.

Bitcoin is accepted in El Salvador as a means of payment for products and services. Photo from BBC/Reuters.

The idea that the government is using public funds to accumulate BTC is also unacceptable to citizens, with 77% of citizens saying such behavior should stop immediately.

Regarding Bitcoin’s supposed benefits of facilitating money transfers, a September 2022 report from the Central Bank of El Salvador revealed that only 2% of money transfers involve digital currencies.

El Salvador: rebellious and confident

Bukele chose the perfect time to challenge Bitcoin last year, as the cryptocurrency hit a record high of around $69,000 last November.

However, due to the volatile nature of the crypto space, the government of El Salvador suffered severe losses as the BTC price plummeted and is currently struggling to create another bull market.

According to press tracking, coin geckoBitcoin is trading at $19,173, down more than 70% from its all-time high.

Despite calling for the highly controversial Bitcoin law to be overturned, Bukele’s strategy has yet to prove successful, so we are optimistic.

This allows the government to dedicate time and resources to realizing its goal of making the country a global cryptocurrency hub, rather than focusing on the negative perceptions of the law that it has gained from the public.

BTC total market cap at $366 billion on the daily chart | Featured image from Nayib Bukele Twitter, Chart: TradingView.com