On September 7, 2021, El Salvador adopted Bitcoin as a legal tender. This is a move by its young and popular President Nayib Bukele. Thus, El Salvador is the first country in the world to officially accept Bitcoin as a legal tender. Businesses are now accepting Bitcoin for goods and services. Notably, global companies like McDonald’s and Starbucks started accepting Bitcoin in the country.
However, there is an exemption for merchants who aren’t technologically equipped to accept BTC. The El Salvador government has installed 200 Bitcoin ATMs around the country. It also bought 400 Bitcoins worth about $20 million. More so, it’s preloading Chivo wallets with $30 worth of Bitcoin for Salvadorans who register.
On the other hand, reportedly Salvadorans live in poverty. Additionally, they don’t have the internet or smartphone access required to access the Bitcoin network. This makes the move less helpful. Therefore, Real Research conducted a survey to hear the public thoughts on the El salvador’s Bitcoin adoption. Read the results below.
- Adopting Bitcoin as a legal tender is a catalyst to the BTC price surge, say 61.09%.
- Utilizing BTC certainly increases transaction convenience.
- 57.88% are in support of the social media campaign ‘Buy Bitcoin to support El Salvador’.
- Both developed and developing countries are going to follow the El Salvador Bitcoin law.
The El Salvador Bitcoin Adoption Is a Push Factor in BTC Price Surge
The world is filled with puzzlement because of the El Salvador Bitcoin adoption implemented at the beginning of September 2021. Thus, Real Research conducted a survey on the adoption of Bitcoin as the national currency in El Salvador. It is without a doubt that the announcement captured so much interest amongst a majority of people worldwide.
To begin with, 70.15% say they are aware of the El Salvador Bitcoin adoption as legal tender. Meanwhile, a lesser percentage (29.85%) say they are not aware of El Salvador adopting Bitcoin as a legal tender. BTC experienced a rise in value after the announcement of the El Salvador news. Though the price fluctuated a bit after. Still, the fluctuation in Bitcoin’s price is not much compared to April-May when it had slid below $30,000 in a massive crash, soon after reaching its all-time peak at $65,000.
Therefore, respondents remain positive that BTC is definitely going to climb in value because of the El Salvador Bitcoin law. In detail, 61.09% say that BTC is going to surge in price. On the other hand, only 10.41% state that the price is going to plunge. Meanwhile, 28.50% state that the price will not be affected. Thus, results show that more people are positive about adopting Bitcoin as a legal tender and increasing BTC price.
Similarly, a number of respondents are for the idea that adopting BTC might be successful in El Salvador in the future. To begin with, 60.95% say ‘Yes, it will be successful’. Following after, 7.23% say ‘No, it will end in failure’. Lastly, 31.82% note that they are not sure.
El Salvador now hosts the third-largest network of crypto ATMs after the United States and Canada, amounting to 70% of all crypto ATMs in South America. Initially, President Nayib Bukele had previously stated that Bitcoin’s adoption would be initially supported by a network of 200 ATMs and 50 branches. To add on, Bitcoin is free from the regulation of central governments and banks. Therefore, the El Salvador government thinks that BTC promotes financial inclusion and development.
Adopting BTC Certainly Increases Transaction Convenience
To add on, results derived from the Real Research online survey application show positive sentiments on this matter. The survey went on to ask what respondents think about adopting Bitcoin as a legal tender.
In particular, the majority 60.60% say ‘Positive’. In contrast, only 10.62% say ‘Negative’. On the other hand, 28.78% expressed that they are neutral. BTC is described as a user-centric financial hub that is devoid of fiat-powered traditional systems. Following the El Salvador Bitcoin law, its shedding positivity on the adoption of Bitcoin as a legal tender. The digital asset is becoming a global phenomenon and gaining mainstream acceptance.
Reportedly, 70% of people in El Salvador do not have bank accounts. The survey on the adoption of Bitcoin sought to learn if accepting BTC as a legal tender increases transaction convenience. A higher percentage of 74.55% say ‘Yes, it will increase’. Meanwhile, 25.45% say ‘No, it will not increase’. Likewise, President Nayib Bukele hopes that Bitcoin is going to alleviate El Salvador’s economic problems.
Apparently, citizens sending money home from abroad account for up to a fifth of the country’s GDP. However, they have to pay high transaction costs, while 70% of people have no bank accounts. Thus, Bitcoin enables quick, cheap payments across borders, and doesn’t require banks. There are also hopes the move could improve citizens’ access to financial services.
Crypto Traders Join Social Media Campaign in Supporting El Salvador Bitcoin Law
Bitcoin experienced a surge amid a social media movement ‘buy Bitcoin to support El Salvador’. With this campaign, the price of BTC rallied by 2.5%, at the time, to reach a four-month high of $51,908. In detail, the Twitter campaign caused an impressive spike in the price of BTC.
Real Research sought to learn the public thoughts on being part of the social media campaign. 57.88% answered ‘Yes, definitely’ they are willing to be part of the movement ‘buy Bitcoin to support El Salvador’. Moving on, ‘Most likely’ (13.08%), then ‘No, I will not’ (8.50%) and 20.54% are ‘Not sure’.
Twitter, often via the #7SeptemberBuyBTC hashtag, shared plans to coordinate $30 purchases of Bitcoin. This move is meant to show support for El Salvador’s Bitcoin law. Some prominent figures joined the campaign as well, including MicroStrategy’s CEO Michael Saylor, who wants “every cyber hornet” to show solidarity with the people of El Salvador and the country’s president Nayib Bukele.
Moving on, Real Research sought to know the benefit of Bitcoin adoption in El Salvador. Firstly, it increases the adoption and use of crypto in El Salvador (36.72%). Secondly, this will boost the El Salvador economy (18.38%). Also, it encourages investors with cryptocurrency to spend more of it in El Salvador (7.20%).
El Salvador’s government has framed the move as a solution that will boost economic development and jobs. Even more, the leaders believe the initiative will raise the profile of the world’s leading cryptocurrency.
Developing and Developed Countries to Also Adopt Bitcoin as a Legal Tender
The world is closely watching El Salvador on its move. There is a divided outlook, while some are in support there are those who are still skeptical. However, if successful, the move is likely to result in other countries adopting cryptocurrencies into their mainstream economies.
If El Salvador adopting Bitcoin as a legal tender will make developing countries also start considering the option? Results from the Real Research survey show that respondents are positive that developing countries will follow suit. ‘Yes, definitely’ (57.11%). ‘Most likely’ (13.42%), and ‘I am not sure’ (25.72%). On the other hand, 2.31% say ‘Unlikely’ and 1.44% ‘Absolutely not’.
Similarly to developing countries’ results, respondents are also positive that developed countries are going to adopt Bitcoin as legal tender. ‘Yes, definitely’ (55.97%). ‘Most likely’ (13.93%), and ‘I am not sure’ (25.70%). On the other hand, 2.84% say ‘Unlikely’ and 1.57% ‘Absolutely not’.
Governments Should Not Move In a Negative Direction Towards Crypto
Most people are excited about the law implemented by El Salvador. However, in some countries, there are still constraints being faced when it comes to adopting crypto. Here are the constraints. The government moves in a negative direction towards cryptocurrency (41.32%), and markets are disrupted due to high price volatility (11.52%). Also, a possible increase in abuse cases such as criminal use can be a concern (5.39%).
It is good that governments like El Salvador have adopted BTC as a national currency. But some countries are yet to accept crypto and recognize it as a legal tender. Cryptocurrency is only a type of extreme financial and emotional democracy. It can make transactions between two individuals secure and possible without inefficient intermediaries. While fiat currency is based on trust in the authority that issues it, crypto offers complete anonymity and freedom.
|Survey Title||Survey on the Adoption of Bitcoin as Legal Tender in El Salvador|
|Duration||September 10 – September 17, 2021|
|Number of Participants||60,000|
|Demographics||Males and females, aged 21 to 99|
|Participating Countries||Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bhutan, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong-Kong), China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Ecuador, Egypt, El Salvador, Estonia, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Maldives, Mauritania, Mexico, Moldova, Mongolia, Morocco,Mozambique, Myanmar [Burma], Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Serbia, Sierra leone, Singapore, Slovakia, Slovenia, Somalia, South Africa, South Korea, Spain, Sri Lanka, Swaziland, Sweden, Tajikistan, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.|
Real Research News is the media platform that presents insights and studies of wide-range of topics. It focuses on insights gathered from its survey app.