El Salvador is just days away from implementing bitcoin as legal tender, but not everyone is happy about it. In fact, recent polls find the majority of people in El Salvador disapprove, and don't plan on using or accepting it. Veterans groups and retirees have been leading demonstrations since the law was proposed in June, with protesters saying that they're worried about money laundering and whether government benefits could eventually be distributed using bitcoin. The Salvadorian government maintains that using bitcoin will be optional and that government benefits will continue to be paid using U.S. dollars, the country's official currency.
A survey from the Universidad Centroamericana-IUDOP found that more than 82% of Salvadorians over 18 have little to no confidence in Bitcoin, and 8 in 10 have little to no interest in using the government's bitcoin wallet, Chivo. A majority of respondents, 57%, believe wealthy individuals and foreign investors will benefit the most from the new law. But the survey also found that a majority of the respondents are unfamiliar with the cryptocurrency. Nearly 90% of people surveyed incorrectly described what Bitcoin is and nearly half did not know the current U.S. dollar value of a single bitcoin. The value of a single bitcoin in the week of August 29 to September 3 ranged between $46,600 and nearly $51,000.
Bitcoin and other cryptocurrencies have been criticized for their intense energy use, which runs counter to environmental sustainability goals. The amount of energy consumed by mining and processing Bitcoin transactions is greater than what some countries, such as Kazakhstan and the Netherlands, consume in a year. While the International Monetary Fund has criticized El Salvador's plan, neighboring Latin American countries are watching closely. Bitcoin will become legal tender in El Salvador on September 7.
Do you trust cryptocurrencies? Should more countries adopt it as a legal tender?