Back in 2021, El Salvador took the first step into making Bitcoin legal tender. It defied the establishment by proving BTC can be used as an alternative to Fiat. Set ourselves forward 4 years later, and now El Salvador is regretting its decision. It made a deal with the IMF, in exchange of limiting its involvement with the world's beloved cryptocurrency. I guess all good things come to an end.
I wonder what could've been the culprit of Bitcoin's limited adoption within the country? Was it bad planning/execution? What if El Salvador rejected the IMF's demands? Would've it survived with Bitcoin as its sole currency? I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
What about other countries adopting BTC as legal tender? Is there still a possibility? Or is it "game over"?
Your input would be greatly appreciated. Thanks.
Half of the households that downloaded Chivo Wallet have downloaded the app, but 60% of early adopters stopped using the app after spending the bonus Bitcoin. According to a survey conducted in 2023, around 92% of Salvadorans do not use Bitcoin. Interesting statistics, since Bitcoin has never been adopted as a payment method in the country. I wonder what could've been the culprit of Bitcoin's limited adoption within the country? Was it bad planning/execution? What if El Salvador rejected the IMF's demands? Would've it survived with Bitcoin as its sole currency? I mean, the government continues to buy BTC. At some point, it would've paid off its debt. That would've help turn it into a developed country in the long run.
What about other countries adopting BTC as legal tender? Is there still a possibility? Or is it "game over"?
Your input would be greatly appreciated. Thanks.
Moreover, there is IMF pressure. We can largely evaluate it as a failure due to the low public adoption rate, technical difficulties and international pressures, but for now, the game is still on, in my opinion.