Home News 14% of Salvadoran businesses have transacted in BTC

14% of Salvadoran businesses have transacted in BTC

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According to a new poll by the Salvadoran Chamber of Commerce, businesses in El Salvador have been hesitant to accept Bitcoin (BTC) after the government notably approved it as legal cash in September 2021.

Only 14% of the 337 businesses polled between January 15 and February 9 indicated they had transacted with Bitcoin since the law took effect. Over 90% of the businesses said that the adoption of Bitcoin in the country has had minimal effect on their sales.

71% of the firms polled were micro or small businesses, 13% were medium-sized businesses, and 16% were large businesses.

El Salvador has been on the US dollar standard since 2001, despite the low acceptance rate. El Salvador’s major means of exchange, unlike those of other emerging nations, is not subject to fluctuating exchange rates. Despite this, more than one out of every ten firms in the nation reported using Bitcoin in the previous five months.

Agencies such as the International Monetary Fund and Moody’s Investors Service have advised against embracing Bitcoin. However, Salvadoran President Nayib Bukele has placed it towards the core of his economic growth agenda. Bukele’s Bitcoin gamble, according to Moody’s analyst Jaime Reusche, might jeopardise his country’s sovereign credit outlook in January.

Tourism in El Salvador up 30% since Bitcoin adoption

El Salvador, on the other hand, is pursuing its crypto strategy by issuing $1 billion in Bitcoin bonds. The revenues from the sale, also known as Volcano Bonds, will be in use to finance Bitcoin City. A fully operational city that would mine the digital commodity using geothermal energy.

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