El Salvador has faced severe economic losses due to the decline of bitcoin and although President Nayib Bukele trusts his payment system with cryptocurrencies, the indicators send another message, even users have been reluctant to use the payment system since they prefer the use of cash.
Although President Nayib Bukele presumes an advanced government with the use of Bitcoin as the national currency, the losses in cryptocurrencies and the lack of confidence of Salvadorans lead his plan to failure.
To try to convince the use of cryptocurrency in the country, the Bukele government granted accounts with 30 dollars in bitcoin, but not everyone has used the resources, mainly because they do not have access to the internet or simply prefer to use cash.
This is revealed by a study by the National Bureau of Economic Research, which decided to conduct a person-to-person survey with cryptocurrency users in El-Salvador, due to the lack of reliable data on the program, official, known as “Chivo Wallet”.
Bukele claimed that three million people downloaded the famous wallet, that is 60% of adults, but there are no details of those round numbers.
“The most important reason for not downloading the application, on the condition of knowing it, is that user prefer to use cash, which was followed by trust issues: respondents did not trust the system or bitcoin itself” indicates the report
Bukele has defended his program and asked critics to relax, but El Salvador had accumulated $103 million in bitcoins but has lost more than $50 million, according to a CNN report.