About three quarters of the population of El Salvador believe that Bitcoin is a failure in their country. This is one of the results of a study conducted by the University of Central America (UCA). This study shows how strongly the legalization of Bitcoin is disapproved of by the population of El Salvador. The president of El Salvador had already warned about such negative comments.
The legalization of Bitcoin is a failure in El Salvador
More than a year after the legalization of Bitcoin in El Salvador, reports assessing the impact of this important reform are trickling in. The University of Central America (UCA) has shared the results of its study on Bitcoin in El Salvador. According to the media outlet Barron’s referring to AFP, local people consider the legalization of Bitcoin by Salvadoran President Nayib Bukele as a failure.
Indeed, the survey conducted by the University of Central America (UCA) reveals that 75.6% of respondents say they have never used Bitcoin in 2022.
77% of Salvadorans believe that its adoption 14 months ago as a legal tender “has been a failure.” As a result, these citizens believe that President Nayib Bukele “should stop spending public money to buy Bitcoins.”
Since the legalization of Bitcoin, the country has already acquired 2,381 Bitcoin without ever selling a single one.
Granting Bitcoin legal tender status is the government’s most unpopular, most contested and most frowned upon move.Andreu Oliva, rector of the UCA
The study did reveal one positive aspect of President Bukele’s policies. This is his war on gangs, which has led to the arrest of over 55,000 criminals. According to the University of Central America (UCA), the population approves of the anti-gang policy by 75.9%.
That’s huge, but it’s down from 84.8% in May.
The University of Central America (UCA) is not the only institution that has painted a bleak picture of Bitcoin in El Salvador. Several reputable newspapers such as The New York Times, Les Echos, … have notably presented El Salvador as being on the verge of economic collapse because of Bitcoin.
Bukele had already warned
The negative assessments of the impact of Bitcoin in El Salvador were expected, at least for President Nayib Bukele. In a recently published op-ed, Nayib Bukele made it clear, among other things, that the misleading criticisms and disoriented analyses of El Salvador are carried by powerful global elites whose power of control is seriously threatened by Bitcoin.
For Nayib Bukele, his country’s economy is doing better than it was a few years ago. He even believes that the legalization of Bitcoin has something to do with it.
While there has been no tax increase in El Salvador, in 2021, GDP has increased by 10.3%, tourism revenues by 52%, employment by 7%, new businesses by 12%, exports by 17%, energy production by 19%, energy exports by 3,291% and internal revenues by 37%. These economic performances have improved the Bukele government’s approval rating, which reached 90% last year.
The impact of Bitcoin on El Salvador’s economy continues to be debated. But, the evidence is that crypto is gaining acceptance in several areas, including trade and taxation. Furthermore, cryptocurrency is on the rise in some countries. This is the case in Canada, the United Arab Emirates, Brazil or India.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.