Almost a year ago, El Salvador recognized bitcoin as a currency legal tender, being the first nation in the world to take this initiative. To learn about the impacts of this decision and the global paths of the crypto economy, a team of experts from Monnos traveled to the country to verify the experience of citizens and merchants. As a result, the popularity of cryptocurrencies has given El Salvador visibility, but financial education programs are needed.
“The changes that have taken place in El Salvador are quickly noticeable. In the first place, there is a clear greater global visibility of the country, mainly attracting the so-called ‘crypto lovers’, people who come to the country to learn about and understand the economic movement that is taking place. The Salvadoran government itself identified it when planning the project BitcoinCitywhich aims to turn the nation into a ‘Las Vegas’ of the crypto economy”, explains Rodrigo Soeiro, founder of Monnos.
And the population sees this growth in the same way? As the objective of Monnos in the trip was to know the experience of the citizens with bitcoin as currency, usage tests and interviews at 68 different points of sale. The result was a diagnosis divided into five different points:
The first was a diffusion gain of cryptocurrencies: the whole nation already knows what bitcoin is. Regardless of the level of knowledge, much of the population is minimally familiar with this universe.
The second point is a awkward association of bitcoin as legal tender for the current president, i.e. those who reject it do not accept the cointhe equivalent to approximately 25% of the interviewed population.
The third point is the need for financial education, mainly bringing the benefits of the use of bitcoin by traders. “In some interviews, business owners did not accept bitcoin payments, but they were outraged at having to pay 5% to credit card brands. That, without knowing that, in the case of cryptocurrencies, there would be no such fee, something that surprised them when we put this informationSoeiro points out.
The fourth point identified that in tourist towns the adoption of cryptocurrencies was natural. Almost all the “gringos” they pay with cryptocurrencies, after all, a huge range of intermediaries is eliminated that, according to the interviewees, makes them spend even more.
The last point is security against volatility. There are rumors that the trader, after crypto transactions, would be exposed to the volatility of the asset, but there is a automatic conversion function of dollars in the local wallet, Chivo Walleteliminating problems in the event of a fall.
Soeiro concludes that El Salvador could not be on a better path, mainly because it chose the crypto economy to expose its full potential as a nation to the world. “I call on all crypto players: to participate, to be present, to offer what you can so that El Salvador achieves what it proposes, there is the opportunity that we all want to show the world the true transformation that cryptography can bring.”.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.