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Analyst JP Koning argues El Salvador's Bitcoin experiment failed as a payments tool despite government mandates, citing low adoption and high volatility.
An analyst has concluded that El Salvador’s high-profile adoption of bitcoin as legal tender demonstrates the cryptocurrency is not destined to function as money. JP Koning argues that despite government mandates and subsidies, bitcoin failed to gain traction as a payment method due to its inherent volatility [2].
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While El Salvador made Bitcoin legal tender in 2021, reports indicate the country repealed its mandate requiring businesses to accept it in early 2025.
No, studies show that most citizens who downloaded the government's Chivo wallet stopped using it after receiving their initial $30 bonus, and only a small fraction of the population uses Bitcoin for regular payments.
As of late 2024, the government's reported Bitcoin investment has reached over $600 million in value, though these remain unrealized gains until the assets are sold.
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 12, 2026 · How we report