According to a new survey, Salvadorans very rarely use the government app and the Chivo bitcoin wallet. Most residents download it to get $30 worth of bitcoins.
The survey was conducted by the U.S. National Bureau of Economic Research in conjunction with Cid Gallup, the results of which were published by Bloomberg. The expected conclusion is that bitcoin has not “caught on” in a Central American country.
The February survey polled 1,800 adults in the country, of which only 20 percent of respondents said they continued to use Chivo Wallet after receiving the $30 bonus. This concluded that “virtually no one installed Chivo on their phone in 2022.”
The main reason for not downloading the app is that people prefer to use cash…respondents did not trust the system or bitcoin itself.
The authors also reported that they found no evidence that the Chivo wallet was used to pay taxes and money transfers on a significant scale.
The data is said to be “consistent” with data from El Salvador’s central bank, which showed that “in 2022, only 1.6% of remittances were sent through digital wallets.”
In the commercial sector, 20% of businesses reported accepting bitcoin as a form of payment, with most of them being “large firms.” The study’s authors added that “an average of 5 percent of all sales were in bitcoin, and most transactions ended up being converted to dollars.”
About $1.1 billion was transferred to El Salvador between January and February 2022, of which $19 million in bitcoin was processed through the Chivo wallet, according to March 25 data from the country’s Central Reserve Bank.