While Bitcoin and other cryptocurrencies are making the headlines and expanding their reach amongst people, it is different for Salvador. A recent study by José Simeón Cañas Central American University indicates negative results regarding people's perception of crypto.
Salvador was the first country to declare Bitcoin as legal tender under Legislative Decree No. 57. Crypto enthusiast Nayib Bukele, the President of the country, sought to make Salvador the "Bitcoin city." He believed such an initiative would lead humanity in the "right direction" by generating employment opportunities and strengthening the economy of Salvador.
However, such a move resulted in grave failure, even after the President spent more than $ 100 million on Bitcoin. The dynamic price of the currency, followed by its deep plunge in the economy, worsened Salvador's economic condition. No wonder the overall situation caused great dissatisfaction amongst the Salvadorans, which the survey highlights.
The survey conducted by Central American University, a non-profit organization, highlights the continuous dissent regarding legal tender. Almost 77.1% of the respondents claimed they wanted the government to stop using public money for buying Bitcoin. That's not all; only 24.4% of respondents claimed to use Bitcoin as a means of payment.
Though establishing a direct connection between Bitcoin spending and Salvador's economic slump is challenging, most citizens asserted the same. While some claimed their life, employment, and standard of living remained the same, others have even reported it worsening.
In contrast, Nayib Bukele seemed to increase spending public money on purchasing Bitcoin, draining public resources. While the country spent $100 million, its current possessions are only worth $ 50 million, owing to the critical performance of the currency. Naturally, the citizens disapprove of such a drain of public resources with little or no benefit from the investment.
Additionally, Nayib Bukele's consistent spending of public money also pushed the national budget of Salvador at risk. While, on the one hand, such spending on a currency that people seldom use in Salvador created considerable dissatisfaction, it also threatened the availability of public money for other projects and purposes. Evidently, the citizens have voted against Bukele's dream of a Bitcoin country.