Bitcoin

David

<a href="https://bitcoinist.com/el-salvador-urged-to-remove-bitcoin-as-legal-tender/">El Salvador</a>, despite its efforts to promote financial inclusivity and spur economic development by accepting <a href="https://bitcoinist.com/el-salvador-set-to-accept-bitcoin-as-legal-tender/">Bitcoin as a legal tender</a>, 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 the country is facing concerning the implementation of <a href="https://www.newsbtc.com/analysis/el-salvador-president-says-country-will-buy-1-bitcoin-a-day/" rel="nofollow noopener" target="_blank">Bitcoin</a>.&nbsp; 
<h2 id="professors-conduct-research-on-bitcoin-in-el-salvador">Professors Conduct Research On Bitcoin In El Salvador</h2> 
The research report jointly authored by Yale Economics Assistant Professor David Argente, Economics Professor Diana Van Patten, and Economics Professor at the University of Chicago, Fernando Alvarez, <a href="https://www.science.org/doi/10.1126/science.add2844?utm_campaign=SciMag&amp;utm_source=Twitter&amp;utm_medium=ownedSocial" rel="nofollow noopener" target="_blank">unveils</a> the adoption and overall sentiment toward Bitcoin in the sovereign country. The report highlights the findings of an intensive face-to-face survey conducted on 1,800 households in the sovereign country.&nbsp; 
The research survey investigated the use of <a href="https://bitcoinist.com/president-bukele-clears-up-misconceptions-about-the-governments-chivo-wallet/">El Salvador’s Chivo Wallet</a> within households, examining factors inhibiting the adoption of Bitcoin among firms and residents in the country. Furthermore, a thorough analysis of the blockchain data from the apps was conducted to verify their findings. These analyses provided the economists with valuable insights and a more comprehensive understanding of how <a href="https://www.newsbtc.com/news/company/bitcoin-in-el-salvador-one-year-later/" rel="nofollow noopener" target="_blank">Bitcoin is faring in El Salvador.&nbsp;</a> 
The result of the survey indicated a lack of widespread acceptance and trust in Bitcoin among residents. Despite El Salvador President <a href="https://www.newsbtc.com/news/bitcoin/2-1-million-salvadorans-actively-using-chivo-wallet-el-salvadors-president-claims/" rel="nofollow noopener" target="_blank">Nayib Bukele’s</a> proclamation of widespread adoption of the Chivo wallet, according to the report, only a small fraction of citizens <a href="https://www.newsbtc.com/news/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</a> for their digital currency transactions.&nbsp; 
Furthermore, the report revealed that a majority of individuals initially downloaded the Chivo wallet due to hype and the free BTC offered upon its <a href="https://www.newsbtc.com/news/bitcoin/el-salvador-chivo-bitcoin-wallet-relaunch-to-serve-4-million-users/" rel="nofollow noopener" target="_blank">launch</a>. However, subsequent trends showed a decline in the adoption and usage of the digital currency wallet, casting doubt on the potential for increased utilization of Bitcoin and the Chivo wallet in the future.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/nszWGjNL/" alt="Bitcoin price chart from Tradingview.com (El Salvador)" width="3266" height="1530"> 
<h2 id="key-factors-behind-el-salvador-s-waning-btc-adoption">Key Factors Behind El Salvador’s Waning BTC Adoption</h2> 
In the research report, it was disclosed that the primary factors inhibiting the <a href="https://bitcoinist.com/bitcoin-goes-to-school-in-el-salvador/">adoption of Bitcoin </a>and Chivo wallets in El Salvador were privacy and transparency concerns.&nbsp; 
Globally, millions of people have embraced <a href="https://bitcoinist.com/how-well-does-blockchain-technology-protect-your-personal-data/">blockchain technology</a> for its capability to provide anonymity, privacy, and transparency in financial transactions. However, for El Salvadorians, cash offered a greater level of anonymity compared to Bitcoin transactions.&nbsp; 
Additionally, the report disclosed a notable lack of trust among citizens for blockchain technology and <a href="https://www.newsbtc.com/news/imf-says-central-bank-digital-currencies-are-the-future-of-money/" rel="nofollow noopener" target="_blank">digital currencies</a>. A combination of all these factors appears to have impeded the growth and adoption of BTC and the Chivo wallet in El Salvador.&nbsp; 
Even with the attractive features and rewards attached to the Chivo wallet, including a $30 Bitcoin bonus, a gas fee discount, and the absence of transactional fees, a less-than-expected amount of El Salvadorians are actively incorporating Bitcoin or the Chivo wallet into their daily transactions.&nbsp;

New Study Reveals How Bitcoin Has Fared In El Salvador As Legal Tender

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