Business

14% of Salvadorian companies have conducted transactions in BTC: Chamber of Commerce

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Businesses in El Salvador have been slow to adopt Bitcoin (Bitcoin) since the country recognized the digital asset as legal tender in September 2021, according to a recent survey by the Salvadoran Chamber of Commerce.

Of the 337 companies surveyed between January 15 and February 9, only 14% were called They had traded in BTC since Bitcoin law came into effect. Over 90% of businesses said the introduction of Bitcoin in the country had little impact on their sales.

71% of the companies surveyed were micro or small, 13% were classified as medium-sized and 16% were large companies.

While the low adoption rate may seem unconvincing on the surface, El Salvador has adopted the US dollar standard since 2001. Unlike other emerging market currencies, El Salvador’s main medium of exchange is not vulnerable to exchange rate fluctuations. Even in this environment, more than one in ten companies in the country reported using Bitcoin over a five-month period.

Salvadoran President Nayib Bukele has placed bitcoin at the heart of his economic growth strategy, despite warnings from institutions including the International Monetary Fund and Moody’s Investors Service against adopting the flagship cryptocurrency. In January, Moody’s analyst Jaime Reusche suggested that Bukele’s Bitcoin Gambit could undermining his country’s sovereign debt prospects.

Related: Tourism in El Salvador has increased by 30% since the introduction of Bitcoin, the minister says

Still, El Salvador is pushing its crypto strategy by issuing $1 billion worth of bitcoin bonds. Also known as Volcano BondsProceeds from the sale will go towards funding Bitcoin City, a fully operational metropolis that will use geothermal energy to mine the digital asset.

Bukele is expected to speak at the upcoming Bitcoin 2022 Conferencewhere he has promised a “huge surprise”.