Salvador, 1st country that adopted Bitcoin as a legal currency in 2021, aroused the hope of a new economic paradigm. However, at the end of 2024, the use of the BTC remains limited. Between technical difficulties and lack of financial education, find out why this bet has not yet kept its promises.
The adoption of bitcoin at El Salvador at the lowest point since 2021
In 2021, El Salvador became the 1st country to adopt Bitcoin as a legal currency, alongside the dollar, thanks to “Bitcoin Ley”, which came into force only a few weeks before the BTC price reached its historic summit of $ 69,000.
At the time, in the upper market, various polls revealed that several hundred thousand Salvadorates had downloaded a portfolio and experienced the use of bitcoin. However, at the end of 2024, a survey indicated that only 7.5 % of Salvadoran used Bitcoin at least once during the year.
The low adoption of Bitcoin was obvious during our trip to El Salvador for the production of our documentary. We found that few points of sale, including among major brands, did not accept Bitcoin paymentsa clear sign of limited demand within the population.
In November 2024, the Cryptoast team went to El Salvador to observe and experiment with the adoption of bitcoin in the country. This immersion gave birth to a documentary, now available on our YouTube channel.
https://www.youtube.com/watch?v=eelnuqs2i9c
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Could the FiaSco of the Chivo Wallet explain the low adoption of Bitcoin in El Salvador?
Several factors can explain an adoption rate that may seem very low. First of all, This figure should be put into perspective, which is actually probably one of the highest in the world.
By way of comparison, a survey carried out by ADAN reveals that 12 % of French people hold cryptocurrencies. However, 2 main differences should be noted: the study of the ADAN has the holders and not users. An individual may very well have bought BTC several years ago without ever having touched there, and encompasses all cryptocurrencies, not just bitcoin.
💶 To deepen-Is Bitcoin (BTC) really a currency?
Furthermore, It is likely that the use of Bitcoin as a means of payment is proportionally more developed in El Salvador than in Francewhere the BTC is mainly perceived and used as an investment asset.
In addition, the launch of the Bitcoin law in El Salvador was accompanied by that of the digital portfolio and the automatic distributors Chivo.
Photo taken during our trials from distributors Chivo
Developed in precipitation by the government of Nayib Bukele, the Chivo Wallet and the automatic distributors aimed to provide simple and free access to Bitcoin. However, The application and distributors were quickly faced with many vulnerabilities, technical bugs and identity theft cases.
So, The fiasco around the Chivo Wallet has considerably cooled the Salvadorians at the idea of using The Bitcoin blockchain. In addition, few of them really understood what Bitcoin was and were mainly content to download the application to benefit from the 30 dollars offered by the government.
Overall, the problems encountered with the Chivo Wallet mainly arise from a lack of communication and education with the population. Moreover, the majority of Salvadorates do not distinguish between Chivo and Bitcoin.
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El Salvador is probably one of the best countries to learn more about Bitcoin
In general, the Salvadorians we met during our trip told us that the adoption of bitcoin by the population did not suffer from real technical limitations, but was mainly hampered by a lack of financial education.
With an average salary of around 450 dollars a month, Salvadorians do not have a savings culture and often live day by day, from one pay sheet to another.
🌎 To go further, discover the team of Discover Bitcoin, Francophones who collaborate with the Salvadoral government
To overcome this, the Salvadoral government, in collaboration with Bitcoin Office, supports various educational initiatives.
Among these, we find Mi Primer Bitcoin and Node Nation, which are mainly aimed at children, adolescents, and high school students in schools. In addition, the CUBO + initiative aims to train and certify Salvadorians so that they become developers specializing in Bitcoin.
Although the launch of the Bitcoin law was marked by a failure, especially because of the problems linked to the Chivo Wallet, The educational initiatives set up by the government could allow the population to build a slower adoption, but also more solid. This could be based on Salvadoral developers capable of designing Bitcoin products and applications adapted to local needs, truly useful for the inhabitants.
📺 Discover our documentary on the adoption of Bitcoin at El Salvador in full on YouTube.
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Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
First attracted by the bait of gain, I am now trapped Deep the Rabbit Hole. Without a way out, I just have to share my knowledge and transmit the passion I have for Bitcoin. I am also the creator of Adopt A Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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