Salvadoran companies are removing bitcoin from their technology innovation plans

ANEP Executive Director Leonor Silva stated that entrepreneurs in her country are working towards the technological transformation of companies, but highlighted that Bitcoin (BTC) did not appear in the process.

About a year ago, El Salvador recognized BTC as legal tender. However, neither citizens nor entrepreneurs have embraced cryptocurrency as a major investment or trading asset.

in an interviewSilva commented that companies are currently undergoing a “decreased use of bitcoin.” According to the CEO, bitcoin “has not been getting the results of opening new markets or generating more opportunities for economic revitalization as has been suggested.”

Despite this, the private sector continues to comply with “Bitcoin LawSilva explained, which requires businesses and corporations to accept BTC as a form of payment.

Digital innovation without BTC

Leonor Silva’s comments about BTC originated in relation to Event On Business Innovation and Digital Transformation, organized by the Business Association for the month of October. A number of relevant international business figures are expected to participate in the proceedings.

The president of ANEP, Agustín Martínez, explained that the business meeting "intends to promote changes and guide companies on what to do to develop and implement a digital economy." He underlined that, for this purpose, it is necessary to identify the opportunities and challenges of the current economy.

The general evaluation of bitcoin by Salvadoran individuals a year after its approval is generally negative. Former President of the Central Bank of El Salvador Carlos Acevedo confirmed the feeling that the digital asset has failed to achieve the main goals promised by the government; Those related to financial inclusion and reducing the cost of sending remittances to El Salvador.

a exploratory study Conducted in February by three US economists, and subsequently published by the US National Bureau of Economic Research, it was found that only 10% of Salvadorans continue to use Bitcoin in daily operations.

The study also highlighted that after spending a $30 stimulus deposited by the government into Chivo digital wallet accounts, 90% of Salvadorans stopped making transactions on the platform.

One of the study's authors, University of Chicago economist Fernando Alvarez, told the New York Times that "the government gave this project all the momentum that could be expected, and it still failed."

Search Conducted by the Salvadoran Chamber of Commerce and Industry in March, the Salvadoran Chamber of Commerce and Industry revealed that only 14% of the country’s companies have transacted with BTC since its approval in September 2021, while only 3% reported any perceived commercial value for the cryptocurrency.

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