Working Study Says Despite Legal Tender Status, Bitcoin Is Not a Widely Accepted Medium of Exchange in El Salvador

According to a moving survey published by the U.S. National Bureau of Economic Research (NBER), astir Salvadorans stopped utilizing the Chivo wallet aft getting their $30 bitcoin bonus. The study shows that the median Chivo wallet idiosyncratic made nary deposits oregon withdrawals successful a fixed month.

NBER Study: Only 4 retired of 10 Salvadorans Use Chivo Wallet After Government’s Bitcoin Bonus

An April 2022 working study published by the NBER, asks if cryptocurrencies are so currencies aft researching bitcoin (BTC) arsenic ineligible tender successful El Salvador. NBER conducted a face-to-face survey with 1,800 Salvadoran households during the period of February 2022. The survey shows that Salvadorans are not utilizing the Chivo wallet that overmuch and successful February, El Salvador’s cardinal slope noted that lone 1.6% of remittances were sent via integer wallets.

Working insubstantial published by the U.S. National Bureau of Economic Research (NBER).

“Most users who utilized Chivo aft spending the $30 bonus bash not prosecute with the app intensively,” the study highlights. In fact, the NBER researchers recovered that the fixed outgo to follow the Chivo wallet was precise large. Moreover, if it wasn’t for the $30 bitcoin bonus, the survey estimates that 75% of the Salvadorans surveyed would person ne'er utilized it. NBER researchers enactment that lone 4 retired of 10 radical who downloaded Chivo wallet are really utilizing the application.

88% of Bitcoin Accepting Businesses Convert Back to Dollars, Study Concludes by Noting Bitcoin Is Not a Widely Accepted Currency successful El Salvador

“The elasticity of substitution betwixt Chivo Wallet and different methods of outgo seems to beryllium large,” the survey adds. “On net, among Chivo Wallet users, 10% study spending little successful cash, and 11% study reducing their usage of debit oregon recognition cards since they downloaded Chivo.”

Working insubstantial published by the U.S. National Bureau of Economic Research (NBER).

Unfortunately, contempt each the reporting that says otherwise, NBER’s survey claims lone 20% of Salvadoran businesses reported connected accepting bitcoin arsenic a mean of exchange. 90% of those businesses were enterprises and “88% of businesses alteration wealth from income successful bitcoin into dollars.” NBER’s findings further enactment that astir 5% of Salvadorans paid their taxation obligations via bitcoin (BTC).

“Overall, contempt the ineligible tender presumption of bitcoin and the ample incentives implemented by the government, the cryptocurrency is mostly not an accepted mean of speech successful El Salvador,” the NBER probe insubstantial concludes.

What bash you deliberation astir the NBER’s survey and findings among the 1,800 Salvadoran households? Let america cognize what you deliberation astir this taxable successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, NBER probe paper

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