Former Ethereum core developer Lane Rettig reports that despite El Salvador’s two-year legal tender status for Bitcoin, its adoption among citizens remains lacklustre, with scepticism surrounding the cryptocurrency’s advantages.
During a captivating presentation at EthCC 2023, Rettig shared the latest developments of El Salvador’s Bitcoin experiment, a topic he had initially explored back in 2021.
Having made two visits to the country post-legalization, Rettig couldn’t help but notice that despite the government’s vigorous promotion, Bitcoin adoption was still dragging its feet, akin to a sloth on a leisurely stroll.
‘Bitcoin is still for Dictators’ Lane Rettig, ex-ETH developer
Bitcoin Failed to Impress El Salvador Residents
According to Rettig, despite around 4 million Salvadorians downloading the state-sponsored Chivo wallet to claim a $30 Bitcoin bonus, only a handful are actively incorporating Bitcoin into their daily routines.
Rettig’s insights reveal that a meager 2% of remittances find their way through Bitcoin, even with the widespread introduction of Chivo ATMs across the United States by the government. Moreover, research indicates that the utilization of digital payments and Bitcoin in El Salvador remains limited and is showing a downward trend as time progresses.
Rettig pointed out that, based on a recent essay by a Salvadorian resident, the majority of people do not perceive any significant benefits from Bitcoin. Surprisingly, despite the government’s relentless promotion, Bitcoin has not gained wide acceptance as a medium of exchange in El Salvador.
Other advantages Linked to Bitcoin in El Salvador
In a striking revelation, Rettig boldly suggests that the Bitcoin law stands as an unyielding bulwark against crime, heralding a triumphant era of enhanced living standards. A wave of surveys echoes this sentiment, with a staggering 80% of Salvadorians hailing the decline in criminal activities during Bukele’s administration. Testimonies of citizens, brimming with newfound confidence, joyfully proclaim that they now venture into the night, embarking on nocturnal escapades with an unprecedented sense of safety and freedom.
A groundbreaking transformation has swept across El Salvador’s landscape, as the number of Bitcoin ATMs skyrocketed from a mere pair in 2021 to a staggering 200 scattered nationwide. Now, rivalling the metropolises of the world, even the most secluded villages bear witness to the advent of these digital marvels. What’s more, in a nod to accessibility, the fees levied at these ATMs are but a faint whisper, as attested by none other than Rettig himself, solidifying a beacon of financial empowerment for the Salvadorian people.
El Salvador also made a good move by passing a digital asset law. This law helps create Bitcoin-based organizations and gives them a legal framework. As a result, many crypto entrepreneurs are now investing in mining and other businesses in the country.
Despite some positive developments, concerns continue to loom over democracy and human rights during President Nayib Bukele’s tenure. His administration has faced allegations of bribery involving gangs and the construction of a vast prison facility. The crackdown on violence has resulted in the incarceration of nearly 2% of the adult population without proper due process. These issues raise important questions about the state of governance and justice under Bukele’s increasingly authoritative rule.
In a bold assertion of power, Bukele swept aside presidential term limits, brushing aside the Supreme Court’s concerns. However, as the shadows of unlimited authority lengthen, dissenting voices fear a perilous path towards dictatorship, where the pillars of democracy tremble. Meanwhile, the promises of prosperity through Bitcoin, once held high, have left many everyday citizens grasping for tangible economic gains, their hopes flickering like distant stars in the night sky.
Although brimming with optimism for Bitcoin’s potential, Rettig stressed the importance of earnest efforts to cultivate trust. “To sway people towards trusting and embracing it,” he asserted, “significant groundwork lies ahead.” Despite the challenges, Rettig maintains a hopeful outlook, believing that El Salvador’s Bitcoin experiment will ultimately pave the way for empowering people through greater financial inclusion.
Bitcoin recently dropped below $29.5K yesterday even after it rallied to $31K last week. Last week’s rally resulted from XRP’s favourable court ruling. However, despite the recent correction – onchain data suggests renewed interest among institutional investors.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
