In a recent survey conducted by the Salvadoran Chamber of Commerce, since the adoption of Bitcoin (BTC) as the legal tender apart from the US dollar bill in September 2021, the country’s companies and businesses have been slow to adopt Bitcoin as a payment system or method.
Between January 15 to February 9, a total of 337 companies have been surveyed, and only 14 percent of them have been told that they have conducted transactions using BTC since the Bitcoin law came into force. Moreover, over 90 percent of companies have stated that they had little or no impact on their sales after overall Bitcoin adoption in the country.
Among the list of companies, 16 percent of them were large businesses, 13 percent of them were classified as medium-sized organizations, and 71 percent of them were considered as small or micro-businesses. Although on the surface the adoption rate may seem unpopular and low, El Salvador has been using the United States dollar standard since the year 2001.
The primary medium of exchange in El Salvador’S economy is not vulnerable to exchange rate fluctuations, unlike the other emerging economies. The recent data has shown that at least one-in-ten businesses have reported the usage of BTC just after the five months of implementation.
The president of El Salvador, Nayib Bukele, has been using the BTC as the base of his economic development plan for though reputed organizations such as the International Monetary Fund (IMF) and Moody‘s Investors Service have placed a warning against adopting the very first cryptocurrency. Jaime Reusche, an analyst from Moody, has suggested that the president of El Salvador may undermine the country’s sovereign credit outlook by adopting Bitcoin as legal tender.
Nevertheless, nothing is stopping El Salvador from moving forward and deploying the crypto strategy by generating $1 billion worth of Bitcoin bonds. These bonds are also known as Volcano Bonds, and the revenue from the sale will be used to fund Bitcoin City, which is a geothermal energy harnessing metropolis for mining digital assets. At the Upcoming Bitcoin 2022 conference, Nayib Bukele is going to come up with a huge surprise, as promised by him.