In 2023, El Salvador remained a primary case study for the adoption of Bitcoin as legal tender. A recent study by the José Simeón Cañas Central American University reveals intriguing data on the use of Bitcoin by Salvadorans for their daily purchases.
A decline in Bitcoin usage
In 2023, Bitcoin usage in El Salvador experienced a significant drop. The study conducted by the José Simeón Cañas University revealed that only 12% of the Salvadoran population used Bitcoin for transactions, compared to 24.4% the previous year. This decrease suggests a certain reluctance or challenges in the widespread adoption of cryptocurrency as a common means of payment. Among users, a large portion (49.7%) used Bitcoin sporadically, limiting themselves to one to three transactions over the year. Conversely, a minority (20%) demonstrated more regular adoption, using Bitcoin ten times or more. These figures illustrate varied usage patterns and highlight the need to examine the factors influencing these behaviors in greater detail.
Main expenses in Bitcoin
Regarding the nature of transactions carried out in Bitcoin, the study reveals interesting trends. Spending is primarily concentrated on everyday purchases : grocery shopping (22.9%) and supermarket purchases (20.9%) constitute the main Bitcoin expenses. Veterinary clinics come in third place, accounting for 15% of transactions. This data shows that, despite the general decline in usage, Bitcoin is gradually anchoring itself in the consumption habits of Salvadorans for daily expenses. This integration indicates a potential for growth in the use of cryptocurrency within retail and services.
Economic perceptions and the future of Bitcoin
How Salvadorans perceive the impact of Bitcoin on their quality of life and the national economy remains mixed. Although the percentage of those who perceive an improvement in family life has slightly increased (rising from 3% in 2022 to 6.8% in 2023), the majority remains skeptical about its positive economic impact. Only 0.5% of those surveyed consider that Bitcoin has had a beneficial effect on the country’s economy. Furthermore, a large majority (77.1%) expresses the wish for the government to stop investing public funds into Bitcoin. These perceptions reflect a certain caution and a possible disillusionment regarding the initial economic promises of Bitcoin as legal currency.
