In the month of September 2021, El Salvador made history by welcoming the community of Bitcoin into its environment. El Salvador was the first country to consider Bitcoin as its legal tender. However, the businesses in the region of El Salvador have been pretty slow when it comes to adopting the Bitcoin cryptocurrency ever since the country quite famously recognized BTC as the legal tender in the month of September.
According to a recent survey that has been done by the Chamber of Commerce in El Salvador, just 14% of transactions have been made in the country which is quite low. Current crypto market news suggests that there might be a rise in transactions in the future.
It is pretty evident from the data collected during the survey that took place from 15th January to 9th February that the number of companies that are a part of the El Salvador government isn’t taking part in the bitcoin transactions as one would hope. Out of the 337 companies that were included in the survey, only 14% of them had conducted transactions in Bitcoin ever since the law was passed recognizing the cryptocurrency as a legal tender.
Over 90% of all the companies had given the indication that the adoption of BTC in the country hasn’t had much effect on sales and business. Out of all the companies in the survey, about 71% were small or micro-businesses and 13% of them were classified to be medium-sized businesses. 16% of the total surveyed companies were large companies.
Adoption of Bitcoin As Legal Tender Has Had Little Impact on El Salvador Company Sales
The low rate of adoption for Bitcoin might be pretty underwhelming, considering the amount of popularity that Bitcoin got in the country of El Salvador. However, El Salvador has been on the United States dollar standard since 2001.
Unlike all the other currencies that are currently a part of the emerging trend of economics, the primary medium of exchange for El Salvador isn’t really prone to the volatility of the exchange rates. Considering the environment that they tend to have.
More than 1 business in every 10 companies has reported the use of Bitcoin over the period of 5 months in El Salvador. These numbers are quite promising to be exact.
The President of El Salvador, Nayid Bukele has made some major predictions about Bitcoin adoption in El Salvador in the near future. The President has presented Bitcoin at the center of the economic growth strategy that he has for the country.
This was even after repeated warnings from the International Monetary Fund as well as the Investors Service against embracing this flagship cryptocurrency in the first place. In the month of January, Moody’s Investors Service analyst Jaime Reusche mentioned that the gambit of the El Salvadorian president would end up undermining the sovereign credit outlook of the entire country.
However, there is no change in the cryptocurrency growth strategy in El Salvador. The country is definitely moving forward with all the crypto strategies that they have. The action taken by El Salvador to issue $1 billion worth of BTC bonds has recently made the current crypto market news as well.
This action by El Salvador was termed as Volcano Bonds. According to the procedure of the Bond, all the proceeds from this particular sale will be moved towards the funding of the creation of Bitcoin City. It is supposed to be a fully functioning metropolis that has all the geothermal energy that is required to properly mine the cryptocurrency without impacting the environment in any way.
The President of El Salvador is also set to give a speech at the upcoming conference of Bitcoin 2022. He has promised to include a pretty huge surprise for the people at the conference.
Also Read: El Salvador may Postpone the Issuance of a Bitcoin Bond due to Concerns over the Russia-Ukraine Conflict
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