El Salvador Bitcoin Experiment Anticlimax? Low BTC adoption and other issues

by James · October 13, 2022

El Salvador’s Bitcoin experiment looks like a failure based on the statements of experts.

(Photo: Photo by Dan Kitwood/Getty Images)
A visual representation of the digital cryptocurrency, Bitcoin on December 7, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile.

In 2021, the Central American country made big headlines after the government decided to adopt BTC as legal tender.

If you don’t know what legal tender is, it is a method of payment that the law recognizes as satisfactory payment for any monetary debt.

This means that El Salvador residents can use Bitcoin to buy anything in the country.

However, Edgardo Acevedo, a development engineer, argued that the country’s BTC experiment is anticlimactic.

El Salvador Bitcoin Experiment Anticlimax?

Via CNBC’s latest report, Acevedo, a 37-year-old resident of El Salvador, explained why the nationwide crypto experiment is anticlimactic.

(Photo: Photo by Sean Gallup/Getty Images)
A sticker on the window of a local pub indicates acceptance of Bitcoins for payment on April 11, 2013 in Berlin, Germany. Bitcoins are a digital currency traded on the MTGox exchange, and the value of the virtual money fluctuated from USD 260 per bitcoin down to USD 130 per bitcoin yesterday and recovered somewhat in today’s trading.

Also Read: South Korean authorities seek to cancel Terra Crypto founder Do Kwon’s passport

“I don’t think anything has changed, except that the country is more recognized than before, but the economic life of Salvadorans remains the same or worse than a few years ago,” said that engineer.

He added that while Bitcoin remains a topic of conversation in El Salvador, adoption remains low. Edgardo further stated that only a few businesses worldwide accept BTC as payment.

On the other hand, he also believes that fewer residents of El Salvador want to pay with digital coins. Because of this, he concluded that BTC was not helping the country’s economy.

He added that nothing had changed before and after the government accepted Bitcoin as legal tender.

Problems with El Salvador’s BTC experiment

Coin Culture reported that the El Salvador government adopted Bitcoin as legal tender on September 7, 2021.

President Nayib Bukele explained that this would help the country attract more foreign investors.

Apart from this, the manager also claimed that it could generate more jobs. However, it seems that his predictions are far from coming true.

Since the digital coin’s value lost around 60%, the use of BTC in El Salvador seems to be low. To learn more about El Salvador’s Bitcoin adoption issues, visit this link.

Earlier, we reported a Bitcoin drop of $22,000, the lowest level it reached in August.

The Ethereum Merge event was successfully launched.

For more news updates on Bitcoin and other cryptocurrencies, keep your tabs open here on TechTimes.

Related article: El Salvador Bitcoin: The International Monetary Fund advises against crypto use, risk and decline now seen

This article is owned by TechTimes

Written by Griffin Davis