El SalvadorDespite its efforts to embrace financial inclusion and stimulate economic development Bitcoin as legal tender, appears to be having trouble achieving widespread acceptance of digital currencies.A research survey conducted by a group of economics professors reveals how the country is implementing Bitcoin.
Professor conducts Bitcoin research in El Salvador
The research report was co-authored by David Argente, Assistant Professor of Economics at Yale University, Diana Van Patten, Professor of Economics, and Fernando Alvarez, Professor of Economics at the University of Chicago, unveiling Bitcoin adoption and overall sentiment among sovereign nations. The report highlights the findings of an in-depth face-to-face survey of 1,800 households in the sovereign nation.
This study investigated the use of Chivo Wallet from El Salvador Inside the Household, examines the factors hindering the adoption of Bitcoin by the country’s companies and residents. Additionally, the application’s blockchain data was thoroughly analyzed to validate their findings.These analyzes provide economists with valuable insights and a more comprehensive understanding of how Bitcoin is doing well in El Salvador.
The survey results show a lack of widespread acceptance and trust in Bitcoin among residents.Although the President of El Salvador Nayib Bukele Reports claim that after announcing widespread adoption of the Chivo wallet, only a small number of citizens Use the country’s Chivo wallet for their digital currency transactions.
Additionally, the report also revealed that most people initially downloaded the Chivo wallet because of the hype and the free BTC it offered emission. However, subsequent trends have shown a decline in the adoption and use of digital currency wallets, casting doubt on the potential for increased usage of Bitcoin and Chivo wallets in the future.
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Key Factors Behind El Salvador’s Decline in Bitcoin Adoption
Research report reveals major factors inhibiting its development Bitcoin Adoption El Salvador’s Chivo wallet has privacy and transparency issues.
Millions of people around the world have embraced Blockchain technology Because of its ability to provide anonymity, privacy and transparency in financial transactions. However, for Salvadorans, cash offers a higher degree of anonymity than Bitcoin transactions.
Additionally, the report reveals a clear lack of trust among citizens in blockchain technology, digital currency. The combination of all these factors appears to be hindering the growth and adoption of BTC and Chivo wallets in El Salvador.
Despite the attractive features and rewards of the Chivo wallet, including a $30 Bitcoin bonus, discounts on gas fees, and no transaction fees, the number of Salvadorans actively incorporating Bitcoin or Chivo wallets is still lower than expected. their daily transactions.
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