HomeBitcoinThe use of Bitcoin for payments in El Salvador has gone down...

The use of Bitcoin for payments in El Salvador has gone down a lot, and people are wondering if the country will continue to use it.

-

El Salvador’s government is happy about Bitcoin, but most people in El Salvador are not. The country that supports Bitcoin saw a big drop in people using cryptocurrency for payments in 2023, even though the price of Bitcoin went up and the government tried hard to promote it.
The Central Bank of El Salvador said that the money sent by Salvadorans living outside the country to their relatives back home, known as “remesas” or remittances, dropped to $82. 93 million from $116. 4 million in 2022. This is a big difference compared to the record high of $8,181. 8 million in all types of family remittances, which was a 4. 6% increase from the year before.

Official numbers show that people in El Salvador sent $30 million less in cryptocurrency compared to the year before. And only 1% of all the money sent back home was sent in cryptocurrency in 2023. The ratio is even worse than the 1. 7% recorded in 2022.

Under President Nayib Bukele’s leadership, El Salvador has been working hard to make Bitcoin a big part of the country’s financial system. They have been working with people who support Bitcoin, like Max Keiser, Jack Mallers, and Saifedean Amous, as well as big companies that deal with Bitcoin, like Binance and Bitfinex.

Although El Salvador has formed important partnerships and was the first country to accept Bitcoin as legal currency, the public’s interest in Bitcoin is still low. A new study showed that most people, about 88%, did not use cryptocurrency in 2023. And fewer people seem to be interested in using it as time goes on.

#EncuestaUCA | En 2023, ¿ha utilizado alguna vez bitcoin para comprar o pagar algo? pic.twitter.com/eYn0Me9uW1

— UCA El Salvador (@UCA_ES) January 10, 2024

The Bukele administration’s money moves, especially with Bitcoin, have been hidden and caused a lot of disagreement. The way that Bitcoin is bought, how much the country has, and where it is stored are not known. This makes people wonder if the country is being honest and responsible in its use of cryptocurrency.

These actions have made the country’s political environment more tense. Right now, Bukele has a lot of power and controls the government, congress, courts, and all political institutions. Additionally, Bukele’s leadership has been complicated by controversial decisions. He has extended his time as president beyond what the constitution allows and has also enforced a never-ending state of emergency to fight against gangs.

These actions, along with the quick decision-making process for using Bitcoin, show that the way decisions are made often favors acting quickly over taking time to think and being open about the reasons behind the decisions.

The situation of El Salvador’s money sent by people living abroad is confusing. The country’s traditional banks and other ways people send money have grown a lot. Actually, the Central Bank’s information shows that there are many different ways for people in El Salvador to get money from other countries. This goes against the idea that Bitcoin would completely change how people in El Salvador get money from overseas.

Even though El Salvador was the first country to use Bitcoin, it doesn’t have many other countries supporting it. Other countries like the Central African Republic tried to make Bitcoin legal money, but it didn’t work out.

Venezuela, a country with a lot of political problems, has allowed the use of cryptocurrency for buying things. But the official cryptocurrency of the country might stop working soon. Crypto use has gone down a lot in the last few years after the government stopped limiting the use of the dollar. This made the official exchange rates the same as the ones on the black market.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

A well-known expert thinks the price of Bitcoin will reach $64,000 in 2025.

In a big deal, Bitcoin went past $64,000 on Thursday, which hasn't happened in over two years. Bitcoin is doing really well right now. Its...

EOS shows it is keeping 2 million EOS safe.

In the ever-changing world of decentralized finance (DeFi), protecting digital assets is most important. Recent EOS events demonstrate the importance of strong security. The recovery...

AI is the future for making diets and preventing diseases that are made specifically for each person.

AI is being used to make diet plans that are personalized and can help you lose weight and stop illnesses like Alzheimer's and cancer. ...

Strike CEO Jack Mallers says company will start offering services in Africa.

Today, Jack Mallers, the CEO of Strike, has announced the expansion of Strike's suite of Bitcoin services into several African markets. I just published Announcing Strike...

Most Popular

ADVERTISE HERE