Businesses in El Salvador have been slow to adopt Bitcoin (BTC) since the country recognized the digital asset as legal tender in September 2021, according to a recent survey by the El Salvador Chamber of Commerce.
Of the 337 companies surveyed between January 15 and February 9, only 14% said have made transactions in BTC since the entry into force of the bitcoin law. More than 90% of companies indicated that the adoption of Bitcoin in the country had little impact on their sales.
71% of the companies surveyed were micro or small companies, 13% classified as medium-sized companies and 16% were large companies.
Yes OK the low adoption rate may seem overwhelming at first glance, El Salvador is on the US dollar standard from 2001. Unlike the currencies of other emerging economies, El Salvador’s main medium of exchange is not prone to exchange rate volatility. Even in this environment, more than one in ten companies in the country reported using Bitcoin in a five-month period.
Salvadoran President Nayib Bukele has placed Bitcoin at the center of his economic growth strategy, even as institutions such as the International Monetary Fund and Moody’s Investors Service have warned against adopting the flagship cryptocurrency. In January, Moody’s analyst Jaime Reusche opined that Bukele’s tactic with Bitcoin could undermine your country’s sovereign credit outlook.
2022 predictions on #bitcoin:
•Will reach $100k
•2 more countries will adopt it as legal tender
•Will become a major electoral issue in US elections this year
•Bitcoin City will commence construction
•Volcano bonds will be oversubscribed
•Huge surprise at @TheBitcoinConf– Nayib Bukele (@nayibbukele) January 2, 2022
2022 Bitcoin predictions:
-It will reach USD 100 thousand
-2 more countries will adopt it as legal tender
-It will become a major election issue in this year’s US election
-Bitcoin City will start to be built
-Volcano bonds will be oversubscribed
-Huge surprise at The Bitcoin Conference
However, El Salvador advances in its strategy with the issuance of Bitcoin bonds worth USD 1,000 million. Also known as Volcano Bondsproceeds from the sale will go towards funding Bitcoin City, a fully functioning metropolis that will harness geothermal energy to mine the digital asset.
Bukele plans to intervene in the next bitcoin conference 2022where he has promised a “big surprise”.
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