A two-tone adoption – In 2021, The salvador made headlines for being the first country in the world to make Bitcoin a legal tender currency. Two years after its adoption, democratization seems to be struggling with the population.
Salvador: the democratization of Bitcoin in slow motion
On September 7, 2021, Nayib Bukelethe President of El Salvador made adopt Ley Bitcoin. This law was intended to make Bitcoin a legal tender currency in the country, a world first.
While some observers bet on a bitter failure, the reality is more equivocal. Almost two years from the anniversary date of this law, David Puell shared the observations ofAngela Dalton, CEO of Signum Growth Capitalin an Ark Invest podcast.
According to his experience, Bitcoin usage in El Salvador remains very low. Nevertheless, the latter highlights the fact that the public awareness is high.
So, despite being aware of bitcoin, Salvadorans continue to show a preference for the US dollar. Indeed, the dollar remains significantly less volatile than Bitcoin. Since the adoption of the law, the bitcoin price fell more than 20%.
As explained by Guillermo Contreras, CEO of DitoBanx, the arrival of Bitcoin took place in two stages. Initially, volumes exploded, following the distribution of $30 in BTC to all citizens who installed the wallet Chivo. Subsequently, the volumes fell back, because the majority of users preferred to convert their BTC into fiat currency.
Some areas, like the El Zonte Bitcoin Beachare exceptions to this phenomenon and show a much higher adoption rate than the rest of El Salvador.
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Towards a paradigm shift with the BRICS currency
However, it should be noted that the omnipotence of the dollar is widely questioned. Indeed, in recent statements, members of the BRICS unveiled their desire to create a common currency to get rid of the hegemony of the American dollar.
A plan that obviously appeals to Moscow because it would allow it to escape international sanctions more easily.
This situation also seems to worry the former president of the United States, Donald Trump. Indeed, he deplores a loss of influence on the part of the USA as well as a loss of the dominance of the dollar internationally.
At the same time, adoption could also happen thanks to the establishment of important players in the ecosystem. Thus, at the beginning of August, the giant Binance has become the first fully regulated exchange in El Salvador.
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