In 2023, El Salvador continues to be a prime study ground for the adoption of Bitcoin as legal tender. A recent study by Central America's José Simeón Cañas University reveals intriguing data on how Salvadorans use Bitcoin for their everyday purchases.
A decline in the use of Bitcoin
In 2023, Bitcoin use in El Salvador fell significantly. The study by the José Simeón Cañas University found that only 12% of the Salvadoran population used Bitcoin for transactions, down from 24.4% the previous year. This decline suggests some reluctance or challenges in the widespread adoption of cryptocurrency as a mainstream means of payment. Among users, a large proportion (49.7%) used Bitcoin sporadically, limiting themselves to one to three transactions over the year. On the other hand, a minority (20%) demonstrated more regular adoption, using Bitcoin ten times or more. These figures illustrate a variety of usage patterns and highlight the need to examine in more detail the factors influencing these behaviours.
Main expenses in Bitcoin
When it comes to the nature of Bitcoin transactions, the study reveals some interesting trends. Spending is concentrated mainly on everyday purchases. Groceries (22.9%) and supermarkets (20.9%) are the main Bitcoin spenders. Veterinary clinics come third, accounting for 15% of transactions. These data show that, despite the general decline in usage, Bitcoin is gradually becoming entrenched in the consumption habits of Salvadorans for everyday spending. This integration indicates growth potential for the use of cryptocurrency in retail and services.
Economic perceptions and the future of Bitcoin
Salvadorans' feelings about the impact of Bitcoin on their quality of life and the national economy remain mixed. Although the percentage of those who perceive an improvement in family life has risen slightly (from 3% in 2022 to 6.8% in 2023), the majority remain sceptical about its positive economic impact. Only 0.5% of respondents believe that Bitcoin has had a beneficial effect on the country's economy. Furthermore, a large majority (77.1%) expressed the wish that the government would stop investing public funds in Bitcoin. These perceptions reflect a degree of caution and possible disillusionment with the initial economic promise of Bitcoin as a legal tender.
