financemagnates.com
A recent study unveiled by the Center for Citizen Studies of the Francisco Gavidia University in El Salvador highlighted that more than half of the Salvadorans still prefer the US dollar over Bitcoin (BTC) as legal tender, and 62.3% disagree with the approval of BTC as legal currency.
There were 1,306 interviews conducted across the country as part of the survey, which aimed to assess Salvadorans' perceptions of how president Nayib Bukele is managing the nation. A little more than 11% of respondents had doubts about either bitcoin adoption or cryptocurrency adoption in the country.
The issue of Bitcoin adoption has been one of Bukele's biggest challenges, as many people have doubts about receiving BTC as payment. As a result, El Salvador has been heavily investing in Bitcoin. In fact, Bukele has acquired over 2,000 BTC since the law was passed last year.
However, these investments have not been good for the country, with agencies like Moody's lowering the country's credit rating because of the lack of transparency surrounding these purchases, as there have been no public announcements about them aside from Bukele's tweets.
Not a Healthy Bet
During 2021, Bitcoin adoption boomed among retail and institutions. In September last year, El Salvador became the most prominent country to accept Bitcoin as legal tender. In addition to adopting the digital asset, the Central American country also began accumulating it for future gains.
El Salvador's Bitcoin bet has now gone negative for its economy. In mid-June, Iran's foreign debt will be repaid to the tune of $38.25 million, as it is also suffering from rising debt. El Salvador spent more than $100 million on Bitcoin purchases since September 2021. As Bitcoin's price dropped by nearly 40% since El Salvador first purchased it, the country has begun to feel the heat of the recent market correction.