Main Points:
- 92% of El Salvadorians do not use Bitcoin for transactions.
- Bitcoin users are on the decline.
- President Bukele’s policies are supported by many, but Bitcoin’s impact on the economy remains limited.
The Reality of Bitcoin Usage in El Salvador
El Salvador made headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. However, a recent survey conducted by Francisco Gavidia University (UFG) paints a starkly different picture than the one imagined when the law was passed. According to the study, an overwhelming 92% of El Salvador’s population has not used Bitcoin for any transactions. This disconnect between government policy and public adoption reveals a broader issue: despite the initial enthusiasm surrounding the adoption of Bitcoin, its practical application remains limited.
Bitcoin, once hailed as a financial revolution for El Salvador, seems to have missed the mark when it comes to day-to-day use by citizens. The survey conducted by UFG in October 2024 revealed that only 7.5% of participants reported using Bitcoin, while 0.5% declined to answer. This data shows a significant gap between the government’s ambitions and the real-world behavior of its citizens.
A Declining Trend in Bitcoin Usage
Interestingly, Bitcoin’s adoption rate in El Salvador seems to be on a downward trajectory. A 2023 survey by Central American University showed that 12% of El Salvadorians had used Bitcoin at least once. This year’s figure—just 7.5%—represents a decline in users, indicating that the initial wave of interest in Bitcoin may have waned.
Additionally, the survey reveals that most citizens do not view Bitcoin as integral to the country’s future. Only 1.3% believe that Bitcoin will play a crucial role in shaping El Salvador’s future, with most respondents emphasizing education and industrial development as more pressing priorities for the nation.
Support for President Bukele Despite Bitcoin Skepticism
While Bitcoin usage is on the decline, it’s essential to note that President Nayib Bukele’s overall approval remains high. His administration’s hardline approach to crime—leading to the imprisonment of 1% of the population—has garnered significant domestic support, despite criticisms from the international community and human rights groups. Although Bukele’s controversial measures have been applauded by many El Salvadorians for improving safety, they have also raised concerns over due process and potential human rights violations.
Despite these issues, 60% of respondents support the direction of the country under Bukele’s leadership. This support largely stems from his crackdown on gang-related violence, even though his Bitcoin initiatives haven’t gained the same level of traction among the populace.
The Future of Bitcoin in El Salvador: Government Initiatives
The Bukele administration continues to push forward with Bitcoin education initiatives, most notably targeting 80,000 public sector employees who are undergoing training to familiarize themselves with the cryptocurrency. These efforts reflect the government’s determination to integrate Bitcoin into the broader economic system, even though public adoption remains minimal.
The government’s pro-Bitcoin stance is also linked to its desire to attract foreign investment, particularly through initiatives such as the construction of Bitcoin City. However, without significant changes in public perception or the creation of more accessible Bitcoin-based infrastructure, these ambitious projects may struggle to gain widespread acceptance.
A Disconnect Between Policy and Reality
Despite the fanfare surrounding El Salvador’s groundbreaking Bitcoin law, its actual impact on the lives of everyday citizens remains limited. With 92% of the population not using Bitcoin, the law seems to have primarily served the interests of the government and foreign investors rather than fulfilling its promise of financial inclusion for the average Salvadorian. While President Bukele’s administration remains popular due to its tough stance on crime, it appears that Bitcoin may not be the game-changer that many had hoped.
The future of Bitcoin in El Salvador depends on whether the government can bridge the gap between its policies and the actual needs and behaviors of its people. As things stand, while Bitcoin education initiatives are underway, it will likely take more than just training programs to convince the majority of the population to embrace cryptocurrency in their daily lives.
