- A report shows that 25% of El Salvador citizens are willing to use bitcoin.
- The report is based on data from the El Salvador Chamber of Commerce and Industry.
- Also, 1% of respondents showed a willingness to use only bitcoin.
Within a month the number of El Salvador citizens ready to give Bitcoin a try has grown to 25%. The news is based on a research by the El Salvador Chamber of Commerce and Industry.
— Documenting Bitcoin 📄 (@DocumentingBTC) June 30, 2021
To clarify, the El Salvador congress voted to make Bitcoin legal tender earlier this month. As a result, the South American country will function with a dual currency. This is because El Salvador will use bitcoin along with the US dollar.
Initially, the bill voted into law specified that it was mandatory for businesses to accept bitcoin payments. However, the state has since relented and opted to use diplomacy instead of force.
As such, businesses now have the option to choose between using either bitcoin, the dollar, or both. In addition, the state is offering citizens that download the crypto e-wallet a gift. Specifically, citizens that get the wallet will get $30 worth of bitcoin.
Also, the special situation in El Salvador could be the reason why positive sentiment around bitcoin adoption is growing. Notably, 25% of the general public is willing to give bitcoin a try. In comparison, 21% of entrepreneurs are willing to give the top crypto a try. In addition, only 1% of both entrepreneurs and non-entrepreneurs are willing to only use bitcoin.
As a country without its own currency, El Salvador faces several challenges that bitcoin could solve. For instance, El Salvador has a documentation problem. This means that about 49% of the adults in the country are undocumented. Further, at least 70% of the citizens are financially excluded as they do not have bank accounts.
Since bitcoin uses blockchain all the citizens need to make financial transactions is a mobile phone. In fact, Satoshi Nakamoto created bitcoin for this very reason. Bitcoin provides a solution to traditional finance and the limits it presents.
However, some economists believe crypto adoption will have disastrous results for the nation. One economist Steve Hanke says drug dealers will use bitcoin to siphon fiat currency from the country. Of note, the graph showing sentiment towards bitcoin use was prepared by Hanke. Contrary to the prediction, El Zonte a fishing village on the coast of El Salvador has been successfully using crypto for about a year. Bitcoin fans are using this village as proof that mass crypto adoption can work.