According to a survey conducted by the Salvadoran Chamber of Commerce, El Salvador has been slow to adopt Bitcoin (BTC). This is despite the fact that the country recognized the digital asset in September 2021 as legal tender.
Only 14% of the 337 companies surveyed between January 15 and February 9, said that they have transacted in Bitcoin since the Bitcoin Law was implemented. More than 90% of companies polled indicated that Bitcoin adoption had not had an impact on their sales.
71% of companies polled were small or micro businesses, 13% were medium-sized enterprises, and 16% were large.
Although the low adoption rate might seem insignificant, El Salvador has been using the U.S. dollars standard since 2001. El Salvador’s main medium of exchange is not susceptible to fluctuations in exchange rates, unlike other emerging economies. In this environment, over one-tenth of the country’s businesses reported using Bitcoin during a five-month period.
Nayib Bukel, Salvadoran President, has placed Bitcoin at the heart of his economic growth strategy despite the fact that institutions such as the International Monetary Fund or Moody’s Investors Service caution against adopting the cryptocurrency. Jaime Reusche, a Moody’s analyst, stated that Bukele’s Bitcoin strategy could harm his country’s sovereign credit outlook.
2022 predictions for #Bitcoin. *Will reach $100k. *2 additional countries will adopt it. *Will be a major electoral issue during the US elections this year. *Bitcoin City construction will begin *Volcano bonds are oversubscribed. *Huge surprise @TheBitcoinConf
— Nayib Buukele (@nayibbukele), January 2, 2022
Related: Tourism in El Salvador up 30% since Bitcoin adoption, minister says
El Salvador continues to implement its crypto strategy and has issued $1 billion worth Bitcoin bonds. The Volcano Bonds are also known as Bitcoin bonds. Proceeds from the sale will be used to fund Bitcoin City, a functioning metropolis that will use geothermal energy for the mining of the digital asset.
Bukele will be speaking at the Bitcoin 2022 conference. He has promised a “huge surprise.”
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