⚠️🛑✋️Laura Andrade, Director of the Institute of Public Opinion at the University of El Salvador (IUDOP), has revealed that a staggering 88% of Salvadorans do not use cryptocurrency for everyday transactions.
This is despite President Nayib Bukele's 2021 initiative to make Bitcoin legal tender, which aimed to reach over 70% of the population.
The initiative, which invested hundreds of millions of taxpayer dollars, has largely failed to achieve its goals. Independent economist Cesar Villalona notes that the decision to not allow wages, pensions, or savings in Bitcoin significantly hindered its adoption.
Currently, a mere 1% of El Salvador's cash remittances, a major contributor to the country's GDP, are made using cryptocurrency. President Bukele has even admitted that Bitcoin adoption has not met expectations.
This raises questions about the feasibility of cryptocurrency as a viable alternative to traditional currency. El Salvador's experiment serves as a cautionary tale for other countries considering similar initiatives.
The low adoption rate can be attributed to various factors, including:
- Lack of understanding and trust in cryptocurrency
- Limited access to technology and infrastructure
- Volatility of cryptocurrency markets
- Inadequate education and support
As the world watches El Salvador's Bitcoin experiment unfold, it becomes clear that a well-planned and executed strategy is crucial for successful cryptocurrency adoption.
