Has El Salvador’s Decision to Make Bitcoin Bid Legal Fail?  Most citizens think so - poll

Has El Salvador’s Decision to Make Bitcoin Bid Legal Fail? Most citizens think so – poll

(Kitco News) El Salvador’s president, Neb Bukele, has received massive global praise from the cryptocurrency community for making his country the first to adopt bitcoin as a legal tender. But a little more than a year later, most Salvadorans view the move as a “failure,” according to the latest poll.

The survey, conducted by the University of Central America (UCA), revealed that 75.6% of those surveyed have never used digital currencies this year, and 77% consider cryptocurrency adoption a “failure,” AFP reported, citing the survey.

El Salvador filed a legal tender for bitcoin alongside the US dollar at the beginning of October 2021, allowing the cryptocurrency to be used in any transaction, from buying a cup of coffee to buying real estate and paying taxes.

Discussing the results of the survey, Andrew Oliva, president of the University of Central Asia, said that the adoption of bitcoin “is the government’s most rejected measure, the most criticized and the most resentful.”

Bitcoin is down 72% from its high of $69,000 posted 11 months ago. The entire digital asset space is in the midst of a crypto winter, as analysts debate what catalyst will help the world’s largest cryptocurrency break free from the tight ranges that have been stuck this fall.

Bitcoin was last traded at $19,156.25, down 1.2% on the day. When Bukele submitted a legal tender for Bitcoin, the cryptocurrency was trading around $45,000.

“Bitcoin remains tightly closed after holding above its long-term support area (around $18.3K to $19.5K) last week,” said Fairlead Strategies founder and managing partner Katie Stockton. “We remain bearish in the medium term, with the price dropping below the retreating daily cloud. The risk of a crash remains elevated, with bitcoin below the 50 day EMA. [near $19.7k], which could increase the risks of secondary support near $13.9K. Long-term momentum remains strongly negative despite oversold conditions. We don’t have evidence yet of a long-term decline for bitcoin.”

One of Bukele’s main arguments for adopting Bitcoin was to save money on bank fees when receiving or transferring money from abroad, especially to/from the United States, where remittances were said to account for more than a quarter of El Salvador’s GDP.

However, the adoption does not appear to be very successful, in light of the survey data. Also, the Central Bank of El Salvador said in September that bitcoin still made up only “less than two percent” of all remittances from immigrants.

Bukele used his massive summer sale to buy more Bitcoin, and last received an additional 80 Bitcoin in July with public funds. The total bitcoin reserves in El Salvador are 2,381 units. the president fell Over $61 million invested in crypto.

The public also viewed the move with disdain, with 77% of those surveyed saying they did not want their boss to continue spending “public money to buy bitcoin.”

Last week, the International Monetary Fund (IMF) said in a report that El Salvador’s economy will expand by just 1.7% in 2023, which will look like a recession.

But despite Bitcoin’s unpopular decision and bleak economic outlook, Bukele remains a popular president, with the highest approval rates in Latin America, according to a CID Gallup poll published last week.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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