Some companies in central San Salvador have stopped transacting with this cryptocurrency as its value is also depreciating internationally.
One year after the announcement and approval of the bitcoin law, several companies in downtown San Salvador have removed their “accept bitcoin” signs and their employees are confirming a downtrend in transactions.
“Now I no longer receive payments in bitcoin, what’s more, people don’t ask for it anymore, and the truth is it’s not profitable,” says Milton Alexander, owner of Photo Flores in Libertad Square.
Although he asserts that initially there were quite a few people who came to pay with this cryptocurrency, he did not dare to invest. “We only get paid because people wanted to spend what the government gave them, we got the money and turned it into dollars and then I paid for petrol and supermarket purchases and that’s what we spent on it,” he said.
Several companies have removed the “accept Bitcoin payment” tags and those who are encouraged to receive Bitcoin as a payment method instantly convert it into dollars.
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In the Chivo e-wallet, launched by the Nayib Bukele government for citizens to trade with Bitcoin, there is a function that allows this process. They are obligated to receive the cryptocurrency, but not store it.
This is the case of Monica Diaz, who works in electronics at Vicmark. “Maybe this year we’ve had one or two payments per month, but no one is using Chivo Wallet anymore. We’re really continuing to charge if someone comes, but there are very few people,” he said.
In the midst of the disaster of the cryptocurrency market, including Bitcoin, thousands of investors were affected by the sudden loss of their funds due to the devaluation of this type of digital asset.
For Armando Alfaro, experimenting with cryptocurrencies has never been so fun. “What is the problem with this app. There were times when it didn’t even work, I had to withhold money because it couldn’t get it out of the ATM or the platform crashed. I no longer receive in Bitcoin, even if they want to buy it for me, let it be in dollars,” Armand said. .
Despite Bitcoin Collapse, Bukele Asks If He Should Buy More
In recent weeks, the cryptocurrency market has seen a bearish trend, especially bitcoin. This cryptocurrency reached $17,630, a value that reflects how far Bitcoin is from its November 2021 high of $68,890 per unit.
Some merchants in the capital keep the app but with a minimum balance, as is the case with Alexander, who confirmed that for several months no one had bought it with cryptocurrency and, for his part, had no money to invest in the platform.
Bitcoin is legal tender in El Salvador since September 7. The government promoted it through the use of Chivo Wallet, but since it was announced on the same day the law went into effect, failures in the system and complaints from residents have continued.
However, in this country where only 23% of the population has a bank account, many merchants have given up on using it.