The study also discovered that Bitcoin is gaining traction in El Salvador when compared to conventional payment options.
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.
Users who have downloaded the government-backed Chivo Wallet have “declined their use of cash by 10%, while their net use of debit cards has decreased by 11%,” according to the research.
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The researchers also discovered that 71% of BTC sales are converted into USD and then withdrawn. Furthermore, 17% of sales are translated into dollars and saved in the Chivo Wallet. Meanwhile, 13% of users have kept their BTC within the Chivo app.
Following the adoption of the Bitcoin Law, an Italian couple attempted to circumnavigate El Salvador for 45 days using solely BTC as payment. The pair discovered that many businesses, including 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.