The low use of bitcoin in El Salvador does not hold back investment by foreign companies

The Chamber of Commerce and Industry of El Salvador (Camarasal) reported that for 91,7% of entrepreneurs in various sectors of the economy, the entry into force of bitcoin (quotation BTC) as legal tender was indifferent. The Central American nation was the first to adopt cryptocurrency as a fiat currency in 2021.  

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Five months after that event, Camarasal conducted a January-February survey targeting small, medium, and large businesses across El Salvador to find out about cryptocurrency acceptance.  

In the survey, 4,7% of respondents said that bitcoin created complications for their business or caused them less sales, while 3,6% said it helped increase sales.  

The trade organization said 52,8% of the companies that participated in the survey were in the service sector, 52,8% in commerce, 33,8% in commerce and 13,4% in industry. .  

The study also focused on the sales that companies made using cryptocurrencies. In this sense, 86,1% replied that they did not sell with bitcoin while 13,9% said they did.  

Recently, a survey by the Instituto Universitario de Opinión Pública (Iudop) of the Universidad Centroamericana José Simeón Cañas (UCA), also showed not very encouraging results on what El Salvador citizens think about bitcoin. 

It indicated that 14,1 percent have absolute confidence in BTC, 34,8 percent do not trust, and the rest are in an intermediate position. On the other hand, he estimated that 22% of the country's population doesn't even know what bitcoin is. 

Companies in the bitcoin ecosystem are attracted to El Salvador  

Despite the data provided by the previously cited polls among the population, El Salvador is attracting foreign investors, especially in the cryptocurrency sector. Exchanges, digital wallets, payment processors and bitcoin custodians have arrived in the Central American country.  

It appears that these investors have a long-term view on the use of cryptocurrencies in the Central American country. They can be attracted to the benefits the government offers to those looking to invest in the cryptocurrency industry, with low taxes and even the offer of citizenship.  

The tourism sector, which has grown by more than 30% in recent months, could be the target of these entrepreneurs. 

According to the Central Reserve Bank (BCR) of El Salvador, since BTC was decreed as legal tender, at least 45 bitcoin service providers have been registered and can operate in the country. 

The list includes Chivo, the bitcoin wallet developed by the government of El Salvador, whose operation has been ruined by network interoperability problems.  

In addition to the state portfolio, 28 exchanges such as Paxful and Paxos are also registered, as well as 21 custodian service providers.  

Businesses wishing to enter the Salvadoran market must register in the Bitcoin Service Provider Register, which is mandatory under the Bitcoin law.