20% of Businesses in El Salvador now accept Bitcoin as their Payment Method

20% of Businesses in El Salvador now accept Bitcoin as their Payment Method
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Business

20% of Businesses in El Salvador now accept Bitcoin as their Payment Method

The study also discovered that Bitcoin is gaining traction in El Salvador compared to other payment options.

04/28/2022

A research done by the National Bureau of Economic Research (NBER) shows that months after Bitcoin (BTC) became legal cash in El Salvador, 20% of companies have begun to accept BTC as a payment method.

The study, which polled people from 1,800 households in El Salvador, sought to assess BTC acceptance in the country following the passage of the Bitcoin Law. The study discovered that Bitcoin is increasing traction in comparison to conventional payment options.

Bitcoin Law of El Salvador mandates economic agents to accept BTC

According to the report, users who have downloaded the government-backed Chivo Wallet have “decreased their use of cash by 10%, while their net use of debit cards has been reduced by 11%.”

Aside from that, because El Salvador’s Bitcoin Law mandates economic agents to accept BTC, the study also questioned survey participants who identified as business owners and staff knowledgeable with company payment methods.

Within this group, 20% said their firm or place of work accepts Bitcoin, whereas just 25% accept credit and debit cards. Furthermore, the report found that “11.4 percent of enterprises have positive Bitcoin sales.”

The researchers also discovered that there are 71% of BTC sales converted into USD and then withdrawn. Furthermore, there are 17% of sales translated into dollars and saved in the Chivo Wallet. Meanwhile, 12% of users have kept their BTC within the Chivo app.

Following the adoption of the Bitcoin Law, an Italian couple attempted to go around El Salvador for 45 days using solely BTC as payment. The pair discovered that numerous businesses, such as McDonald’s and Starbucks, already accept Bitcoin. However, they also encountered vendors who were unfamiliar with cryptocurrencies.

In the meanwhile, the Central African Republic has recently made Bitcoin legal tender. As a result, inhabitants of the country are legally permitted to utilize BTC in the same manner as the country’s franc. Aside from that, the African country built a regulatory framework for the use of cryptocurrency.

By Elah Mae Ariate Wozinga Staff

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