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14% Of El Salvador Businesses Transacted In BTC: Report

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About 14% of El Salvador businesses transacted in BTC in 2021 and it was the first country to officially recognize BTC as a legal tender as we recently reported in our bitcoin latest news.

The 14% of El Salvador businesses but the rest were quite slow to adopt BTC since the country recognized the digital asset as a legal tender in 2020 according to the survey done by the Salvadoran Chamber of Commerce. Of the 337 companies between January and February said they transacted in BTC since the BTC law came into effect and about 90% of the companies indicated that the BTC adoption in the country had a little impact on the sales.

The seventy-one percent of companies polled were micro or smaller businesses and 13% classified as medium-sized enterprises and 16% of large companies. While the low adoption rate looks underwhelming at the surface, El Salvador was on the US dollar standard since 2001, and unlike the currencies of other emerging economies, El Salvador’s medium of exchange isn’t really prone to exchange-rate volatility and even in the environment, more than one-in-ten businesses reported they used BTC over a five-month period.

The Salvadoran President Nayib Bukele put BTC near the center of the economic growth strategy with institutions like the International Monetary Fund and Moody’s Investors Service all warned against embracing the number one cryptocurrency. Moody’s analyst Jamie Reusche opined that Bukele’s BTC gambit can undermine his country’s sovereign credit outlook. El Salvador is now going ahead with the crypto strategy by issuing $1 billion worth of BTC bonds, known as Volcano Bonds, the proceeds of the sale will go towards funding BTC City which is a fully functioning metropolis that will bring geothermal energy and mine the digital asset. Bukele Is also scheduled to speak at the upcoming BTC 2022 conference where he promised a huge surprise.

Nayib Bukele Predicts, btc, bitcoin, el salvador
Nayib Bukele, Source: Wikipedia

The Finance Minister noted that El Salvador might delay the BTC bond issue because of the war in Ukraine but did mention that the bond was nearly ready however it will affect the time of issuing. The government’s tactics around BTC adoption have been criticized and $1 billion in BTC bonds are intended to fund the Bitcoin City in El Salvador. El Salvador is waiting to release the BTC-backed bond pending developments in the Russian invasion of Ukraine and it is meant to be used to fund the nation’s Bitcoin City and other purchases of Bitcoin.

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