Experts from the National Bureau of Economic Research (NBER) of El Salvador found that Bitcoin is gradually gaining momentum compared to other payment methods in the country.
A few months after Bitcoin (BTC) became legal tender in El Salvador, a study by NBER shows that 20% of businesses have started accepting BTC as a payment method.
The study, which included adults from 1,800 households in El Salvador, aimed to measure the degree of BTC adoption in the country following the passage of the bitcoin law. Researchers have found that BTC is gaining momentum compared to other payment methods.
According to the report, users who downloaded the state-supported Chivo Wallet “reduced their cash usage by 10%, while net debit card usage decreased by 11%.”
In addition, since El Salvador’s Bitcoin Law requires economic agents to accept BTC, the study also interviewed survey participants who identified themselves as business owners and employees familiar with payment methods for companies.
In this demographic, 20% said their company or place of work accepts BTC, and only 25% accept credit and debit cards. In addition, the study notes that “11.4% of firms have positive Bitcoin sales.”
The researchers also found that 71% of BTC sales proceeds are mostly converted into dollars and then withdrawn. In addition, 17% of BTC receipts are converted into dollars and stored in the Chivo wallet. And only 12% of those surveyed saved their BTC in the Chivo app.
After the Bitcoin Law was passed, an Italian couple tried to travel around El Salvador for 45 days using only BTC as a means of payment. The couple discovered that many places, such as McDonald’s and Starbucks, are already accepting bitcoin. However, they also encountered vendors who were not at all familiar with cryptocurrencies.
Meanwhile, the Central African Republic has recently adopted BTC as legal tender . At the same time, residents of the country are legally allowed to use BTC in the same way as the local franc. Apart from this, the African country has also established a regulatory framework for the use of cryptocurrencies.