People Reject Cryptocurrency, El Salvador’s Plan To Make Bitcoin Legal Tender May Derail

As El Salvador prepares to become the first government in the world to recognise Bitcoin as legal cash on September 7, there is rising scepticism.

The measure has been promoted by the administration as a means of boosting economic development and job creation.

According to polls, Salvadorians are unprepared for the change, and the World Bank has warned against its implementation.

According to analysts, it is a “attention-seeking manoeuvre” by a “authoritarian administration.”

The historic day next week follows a vote by lawmakers in June to legalise cryptocurrency.

Businesses will be required to accept Bitcoin or the US dollar, the country’s other legal currency, as payment under the country’s Bitcoin Law.

More than 200 new cash machines are being placed throughout El Salvador to allow for the conversion of dollars into Bitcoin.

El Salvador’s government is giving away $30 (£22) in free bitcoins to encourage citizens to utilise the country’s national wallet, which can be accessed via an online app.

Since the announcement of the transfer, El Salvador has been split.

Recent rallies in El Salvador’s capital, San Salvador, have revealed a lack of trust among locals, many of whom are still unfamiliar with cryptocurrency.

According to a survey conducted by Central American University (UCA), only 4.8 percent of the 1,281 people polled understood what Bitcoin was and how it was utilised.

More than 68 percent of those polled stated they opposed utilising cryptocurrency as legal cash.

According to a poll, seven out of ten respondents want the government to repeal the law. There have also been street protests in which people have stated that they do not want Bitcoin.

More than two million Salvadoran employees working in other nations send money home to their families. Remittances account for almost 20% of the country’s GDP.

Those in favour of the idea have stated that adopting Bitcoin might reduce the cost of sending money home.

Bitcoin, a virtual currency with no direct link to the real economy, has seen significant price changes over the years.

It plummeted drastically in May as a result of a Chinese crackdown and Elon Musk’s Tesla’s decision to no longer accept it as payment.

However, it has now recovered, reaching above $50,000 (£36,000) in late August for the first time in three months.