Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Research found that 60% of Salvadorans stopped using Chivo Wallet after receiving the USD $30 bonus and only 20% of businesses in the country accept Bitcoin.
Despite the fact that almost a year ago Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. was recognized as legal tender in El Salvador, the flagship cryptocurrency is far from being the favorite exchange option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. among locals.
Un recent survey published by the United States National Bureau of Economic Research (NBER) provided some information on the status of adoption of the Bitcoin in the Central American country, and the widespread use of Chivo Wallet, the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. wallet promoted by the national government to encourage the use of Bitcoin .
The report found that very few people have used Chivo Wallet a place where cryptocurrency users can store, send and receive digital assets. in recent months, specifically, its use decreased since the government of President Nayib Bukele granted the bonus of USD $30 in BTC for users who download the application.
“ Among those who have downloaded the application, more than 60% did not use Chivo Wallet after spending their $30 voucher . In addition, most of the users who used Chivo after spending the $30 bonus do not use the application intensively. “said the study, which surveyed adults in 1,800 households throughout El Salvador during February 2022.
Use of Goat fell after bonus distribution
Although almost 70% of the Salvadoran population is aware of the existence of the Bitcoin promoted by the government, and among them 78% say they have -at least- tried to download it, the use of the application seems to be scarce, and has been significantly reduced.
According to the study, most downloads of the wallet app coincided with the USD $30 bonus promotion, and no downloads have been recorded so far in 2022.
At the same time, the investigation claims that there were no “ evidence that the Chivo application is being used to pay taxes or send remittances on a significant scale “Both uses are widely promoted by the government. Also estimates that 75% of Salvadorans surveyed would never have used it, had it not been for the $30 bonus.
En cuanto a la aceptación más general de Bitcoin researchers at NBER found that cash remains by far the most widely used means of payment in the country. ” More than 50% of people use only cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. to pay for their expenses. We also documented that more than 70% of respondents are unbanked, and nearly 90% of them do not use mobile banking. “, he pointed out.
Although, the study did find that the use of Goat Wallet could decrease that of other payment mechanisms. It was found that users who have downloaded the app reduced their use of cash by 10%, while their net use of debit cards has been reduced by 11%. On the other hand, it was reported that 5% of Salvadorans have paid taxes with the app. Bitcoin .
Salvadoran companies have also failed to adopt Bitcoin
Despite what other reports claim, NBER’s research asserts that businesses haven’t widely adopted cryptocurrency either. While almost all companies accept cash as a means of payment, only 20% of them accept cash as a means of payment. Bitcoin said the study. Of the few sales in cryptocurrencies, only 4.9% have been paid for through Chivo Wallet .
When it comes to the group of companies that accept the digital currency, it was found that most do not hold funds in BTC. “ 71% of Bitcoin sales are converted to dollars and then withdrawn in cash, 17% are converted to dollars and stored in Chivo Wallet, and only 12% are stored as Bitcoin within the Chivo app. “said the study, adding:
It is important to note that only 11.4% of companies have positive sales in Bitcoin.
Cabe señalar que la Ley Bitcoin by which the main cryptocurrency is recognized as legal tender in El Salvador, establishes that all economic agents operating in that nation must accept Bitcoin as a payment method.
“ Overall, despite Bitcoin’s legal tender status and the great incentives implemented by the government, the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. is largely not an accepted medium of exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. in El Salvador. ”, concluyó la investigación.
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Article by Hannah Estefania Perez / DiarioBitcoin
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