The Salvadoran Chamber of Commerce recently conducted an interesting study. It shows that companies operating in El Salvador have been reluctant to use bitcoin since the country recognized it as legal tender in September 2021.
Of the 337 companies that took part in the survey between January 15 and February 9, only 14% have carried out transactions in BTC since the bitcoin law came into effect. More than 90% of enterprises said that the adoption of BTC in the country has little impact on their sales.
Seventy-one percent of the companies surveyed are micro-enterprises, 13% are medium-sized entities, and 16% are large companies.
While the low adoption rate may seem disappointing at first glance, El Salvador has been using the U.S. dollar standard since 2001. Unlike the currencies of other emerging economies, el Salvador’s primary medium of exchange is therefore not susceptible to currency fluctuations. Still, more than one in ten companies in the country have declared using bitcoin in the past five months.
El Salvador’s President Nayib Bukele has made the original cryptocurrency the focal point of his economic growth strategy. And this despite the fact that institutions such as the International Monetary Fund and Moody’s Investors Service have warned against the adoption of this flagship cryptocurrency. In January, Moody’s analyst Jaime Reusche said Bukele’s decision could undermine his country’s credit outlook.