According to CryptoWhale, Bitcoin transactions in El Salvador have plunged 89% recently. The staunch Bitcoin critic, who is also ironically an investor, is noting that it is indicative of El Salvadorans wanting to ditch Bitcoin.
Bitcoin was officially adopted as legal tender in El Salvador in September of this year. Since then, there have been positive reports coming out of the country for Bitcoin adoption. Reports have noted that with over 3 million downloads of the Chivo wallet, there are more El Salvadorans with Bitcoin wallets than traditional bank accounts.
Bitcoin adoption in El Salvador has also been on the rise for both cross-border remittances and local payments. According to Alexander von Frankenberg, the managing director and founder of High Tech Founder Fund, who visited the country a while back, people are actually using Bitcoin in the country as many places accepted the cryptocurrency, powered by the very fast and cheap lightning network.
According to CryptoWhale, El Salvador might eventually ditch Bitcoin
Amid the positives, there are however some concerns that have been raised. According to cryptocurrency investors and analyst CryptoWhale, Bitcoin transactions in El Salvador have dropped by 89% since it was made legal tender. Using this metric, he asserts that it is clear people do not want to use Bitcoin as it was outdated due to the network’s challenge of high transaction fees and slow transaction times.
Bitcoin transactions in El Salvador have plunged over 89% since they made it legal tender. People don’t want to use some outdated tech that has high fees, and slow transaction times” CryptoWhale noted in his tweet. He adds that it is time the people of El Salvador ditch Bitcoin and opt for other cryptocurrencies with “real utility.”
CryptoWhale’s observation and criticisms of El Salvador’s Bitcoin adoption are only the latest in a barrage of criticisms the country has faced and is seemingly pay no mind to. El Salvador’s President Nayib Bukele set out on his Bitcoin mission with the goal of banking the unbanked in his country and also bringing economic development with the adoption of Bitcoin.
El Salvador remains a key pioneer in Bitcoin’s increased global adoption
Bukele has taken the role of a Bitcoin evangelist for El Salvador, even conducting the country’s Bitcoin buying from his mobile device. El Salvador currently holds 1,141 Bitcoins worth roughly around $58 million and plans to buy more.
Bitcoin adoption as legal tender by El Salvador has also given more conviction to other countries that are considering the move. Countries including Panama, Cuba, and Ukraine have already taken serious strides to follow suit with El Salvador. Several other countries as well are seriously considering regulating cryptocurrency in a more friendly manner in order not to be left out.