The Saviordespite its efforts to promote financial inclusion and stimulate economic development by accepting bitcoin as legal tender, appears to be encountering difficulties in achieving widespread acceptance of the digital currency. A research survey conducted by a group of economics professors has revealed numerous challenges facing the country in relation to the implementation of bitcoin-a-day/” rel=”nofollow noopener” target=”_blank”>bitcoin.
Professors carry out research on bitcoin in El Salvador
The research report, co-authored by Yale assistant professor of economics David Argente, economics professor Diana Van Patten, and University of Chicago economics professor Fernando Álvarez, reveals adoption and general sentiment towards bitcoin in the sovereign country. The report highlights the results of an intense in-person survey carried out among 1,800 households in the sovereign country.
The research survey investigated the use of El Salvador's Chivo Wallet within households, examining the factors inhibiting bitcoin adoption among businesses and residents of the country. Additionally, a comprehensive analysis of the applications' blockchain data was performed to verify its findings. These analyzes provided economists with valuable insights and a more complete understanding of how bitcoin-in-el-salvador-one-year-later/” rel=”nofollow noopener” target=”_blank”>bitcoin is doing well in El Salvador.
The survey result indicated a lack of widespread acceptance and trust in bitcoin among residents. Despite the president of El Salvador bitcoin/2-1-million-salvadorans-actively-using-chivo-wallet-el-salvadors-president-claims/” rel=”nofollow noopener” target=”_blank”>Nayib Bukele's proclamation of widespread adoption of the Chivo wallet, according to the report, only a small fraction of citizens bitcoin/just-10-days-after-el-salvadors-bitcoin-day-president-bukele-confirms-1-1-million-citizens-have-chivo-wallet/” rel=”nofollow noopener” target=”_blank”>make use of the country's Chivo wallet for your digital currency transactions.
Additionally, the report revealed that most people initially downloaded the Chivo wallet due to advertising and the free btc offered on its bitcoin/el-salvador-chivo-bitcoin-wallet-relaunch-to-serve-4-million-users/” rel=”nofollow noopener” target=”_blank”>launch. However, subsequent trends showed a decline in digital currency wallet adoption and usage, casting doubt on the potential for greater utilization of bitcoin and the Chivo wallet in the future.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/New-study-reveals-how-Bitcoin-has-fared-in-El-Salvador" alt="Tradingview.com bitcoin Price Chart (El Salvador)” width=”3266″ height=”1530″/>
btc price at $42,850 | Source: BTCUSD on Tradingview.com
Key factors behind declining btc adoption in El Salvador
In the research report, it was revealed that the main factors that inhibit the bitcoin adoption and Chivo wallets in El Salvador were privacy and transparency concerns.
Worldwide, millions of people have adopted block chain technology for its ability to provide anonymity, privacy and transparency in financial transactions. However, for Salvadorans, cash offered a greater level of anonymity compared to bitcoin transactions.
Additionally, the report revealed a notable lack of trust among citizens in blockchain technology and digital currencies. A combination of all of these factors appears to have impeded the growth and adoption of btc and the Chivo wallet in El Salvador.
Even with the attractive features and rewards attached to the Chivo wallet, including a $30 bitcoin bonus, a gas fee discount, and no transactional fees, a smaller-than-expected number of Salvadorans are actively incorporating bitcoin or the Chivo wallet in your daily transactions.
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