El Salvador's Drive for Cryptocurrency Adoption Faces Challenges Despite Progressive Measures
Summary:
Despite the El Salvador government's attempts to foster widespread cryptocurrency support, CoinGecko's latest report reveals that the number of crypto owners remains relatively low within the nation. The nation, being the only one using crypto as legal tender, has a small fragment of its population, about 1.72% owning Bitcoin. The report discloses that crypto-banned countries like China possess a higher percentage of digital asset owners. El Salvador is actively increasing its crypto presence, launching a citizenship-by-investment scheme for those ready to invest $1 million in Bitcoin or Tether. These measures follow after President Nayib Bukele's announcement of the country's Bitcoin investments reaching $131 million, leading to substantial gains.
Despite El Salvador's certain steps to foster expansive cryptocurrency acceptance, a recent CoinGecko analysis critiques the country's rather scarce crypto holdings. The study, released on December 7, underscores that El Salvador is the only space worldwide that has accepted crypto as an authorized means of exchange. Yet, it points to a rather scant segment of the population engaging with Bitcoin (BTC). It reads, "Despite this courageous venture, the adoption of Bitcoin in El Salvador remains considerably low."
Data from Triple A reveals that roughly 109,175 Salvadorans hold Bitcoin in a national population of 6.36 million, reflecting a mere 1.72%. On the global crypto acceptance scale, El Salvador occupies 55th place. Interestingly, countries, even with restrictions on crypto, are seeing swifter growth rates.
In relation to this, even with the enforced crypto curbs in China, larger proportions of its inhabitants reportedly possess digital assets. The study communicates, "An estimated 4.08% of China's total population (or 58 million individuals) currently hold cryptocurrency."
This emerges after El Salvador's President Nayib Bukele's disclosure that national Bitcoin investments have hit $131 million. By December 4, the return had touched up to $3.6 million, bringing about a net gain of 2.84%.
El Salvador's endeavors to upscale crypto presence within its borders are proliferating. Reports on December 8 suggest a new citizenship-by-investment scheme aimed at extending a residency visa and a pathway to citizenship to any willing to invest $1 million in Bitcoin or Tether within the nation.
An accompanying piece highlights: US lawmakers' apprehensions and scepticism fuel proposed crypto regulations.
Published At
12/9/2023 7:59:33 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.