Bitcoin is now accepted by one-fifth of businesses as a means of payment in El Salvador, says the National Bureau of Economic research. The research was carried out on 1,800 adults in El Salvador and it was discovered that many have embraced bitcoin as a means of paying for goods and services.
In the past month, bitcoin has been a wanted asset in El Salvador. The El Salvador government has been showing interest in bitcoin more than any other asset lately. Bitcoin is fast becoming the most accepted means of paying for goods and services in El Salvador.
The researcher also discovered that many have started the chivo wallet authorized by government authorities instead of using the traditional method of payment. The use of fiat money payments reduced by 10% and the use of the automated teller card has been reduced by 11%.
The researcher also discovered that 20% of the individual studies revealed that 20% of firms now pay their staff and transact with BTC. But 25% have not fully embraced the development and over 11% are making sales using bitcoin. 17% change their BTC into USDT in their Chivo wallet and 12% leave it as BTC.
Following the government of El Salvador’s announcement that BTC is now a legal tender in the country, a man and his wife from Italy decided to tour El Salvador with only BTC for purchase. They both discovered that some parts and shops accepted BTC while some did not accept it.
The Journey Of Bitcoin In El Salvador
In September 2021, El Salvador declared bitcoin a legal tender in the country. The bill was signed into law after 64 of the legislators voted in support of bitcoin and 20 against it. The Law was fully welcomed by those who were already part of the cryptocurrency market. The Bank of America also welcomed the development.
Since Bitcoin was legalized in El Salvador, the government has been putting effort and investing in Bitcoin to encourage the people to accept the use of BTC. They promised to give adults in the country $30 worth of BTC to start within the Chivo wallet. Willy woos estimated that the government of El Salvador will need about $135m BTC to provide $30 BTC for the people.
The El Salvador government also built Crypto ATMs around the country so that citizens can make cryptocurrency transactions easily.
Why El Salvador Adopted BTC
The adoption of bitcoin will solve the high rate of sending and receiving money in El Salvador. The president also said that citizens’ transaction fees will reduce and they can have an extra $400m savings yearly. It will make it easier for citizens to transact without needing to go to any financial institution.
Citizens who accepted bitcoin and invested in it made huge profits when there was a pump. Women also embraced the use of bitcoin which led to a great number of women making waves in the cryptocurrency space in El Salvador.