El Salvador Struggles with Low Cryptocurrency Adoption
Date: 2023-12-10 Author: Dima Zakharov Categories: BLOCKCHAIN
In El Salvador, a country with a population of 6.36 million people, only about 109,175 individuals, approximately 1.72%, own Bitcoin, according to Triple-A data. Furthermore, El Salvador ranks 55th in the global cryptocurrency adoption index.
Meanwhile, the Salvadoran government is intensifying its efforts to increase cryptocurrency investments within the country. According to President Nayib Bukele's December 4th announcement, the total investment in Bitcoin cryptocurrency amounts to $131 million with a net profit of $3.6 million and a total profit of $2.84 million.
On December 1st, Bukele resigned as the President of El Salvador after the approval of the Legislative Assembly, allowing him to focus on his 2024 presidential campaign. During his first term as president, this Central American country acquired BTC through its national treasury, starting in September 2021, with initial investments of $10.3 million. However, the price of Bitcoin soon plummeted by over 50% due to the bear market.
Nevertheless, Bukele continued to dollar-cost average Bitcoin investments in the country, making purchases since 2022. At one point, the country's Bitcoin portfolio fell to $45 million from a balance value of $109 million.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. Additionally, El Salvador launched a new "Citizenship for Investment" program that provides residency visas and a path to citizenship for 1,000 individuals willing to invest $1 million in Bitcoin.
The authorities in El Salvador are striving to attract investors to boost the country's economy through Bitcoin. If successful, these plans will provide additional funds for infrastructure development.
Overall, El Salvador has set an example of successful Bitcoin utilization in its economy, though there is still criticism of the government's actions regarding cryptocurrency adoption.
