When El Salvador shockingly announced the adoption of the flagship asset as a legal tender last September, it was met with criticism, and a lot was expected from the implementation. The IMF and the World Bank considered the bill ridiculous and careless, while El Salvadorians took to the streets to protest, arguing that the adoption would only benefit the rich.
Experts were eager to see how bitcoin will drive the economy and influence bilateral relations. Of course, the reason for the adoption is to overcome the economic sanctions placed on them and the massive debts lingering on their necks.
Six months down the line, it seems all isn’t going well as planned. A recent survey proves that the country’s crypto dreams may be shattering into tiny pieces.
What the Survey Says
According to the Chamber of Commerce and Industry, 91% disclosed that accepting BTC has been indifferent to the businesses. A staggering 86% of the respondents said they haven’t made any sale using the coin. Based on the survey, only 16% were large-scale businesses, while 13% were medium. The majority were small-scale businesses.
Several experts and El Salvadorians pinpointed some cracks in the project. Apparently, there’s a clash of identity and purpose of the project between President Bukele and the decentralized community due to the former’s authoritarian rule. So far, the project has been impeded by technical glitches.
Shortly after the adoption announcement, Gerry Rice of the IMF said the move would raise several macroeconomic and financial issues that needed meticulous thinking to avoid any blowbacks. The World Bank said it couldn’t support El Salvador on the plan due to transparency and environmental issues.
The Future Looks Gloomy
Judging by the forewarnings and backlash, it’s evident Bukele doesn’t have the support of the international community or El Salvadorians. Most of the backlash stemmed from the fact that he didn’t think it through thoroughly before going ahead with the plan. Some opine that he did it out of self-interest.
Alex Gladstein of the Human Rights Foundation gave no second thought on why Bukele adopted BTC as one of its official trade currencies. In his opinion, Bukele did it to get his name in the famous book and for selfish reasons.
The future of BTC looks bleak. Although the country has announced plans to construct a Bitcoin City and numerous infrastructures with profits, there’s a gradual decline in belief in the ambitious project.
With BTC starting the year on the heels of a loss and fluctuating throughout 2022, the state of the project has cast gloom on everyone, not just El Salvadorians alone but the entire world. At press time, BTC is $42k in the intra-trading market.