Bitcoin has been legal tender in El Salvador for nearly three months! On-site interviews reveal a polarized adoption rate, with only chain stores like McDonald's and Starbucks accepting it.

Since the Bitcoin Law in El Salvador officially went into effect on 9/7, it has been nearly three months. Foreign media Decrypt conducted on-site interviews in this Bitcoin capital. However, apart from the beach town "El Zonte," where a small Bitcoin economy has long been established, the adoption rate of Bitcoin is extremely low, and acceptance levels are polarized.

Background of El Salvador

According to previous reports, the Republic of El Salvador, República de El Salvador, is located in Central America, bordering Guatemala and Honduras, with a current population of 6.51 million people and a GDP per capita of approximately $3,500.

For comparison, Taiwan has a population six times that of El Salvador, an area 1.7 times larger, a population density twice that of El Salvador, and a GDP per capita of around $32,000.

Statistics at the time indicated that about 29% of the population in El Salvador had bank accounts, 5.7% had credit cards, 3.5% had mobile banking accounts, and only 5.6% shopped online or paid bills online. Internet penetration was mostly concentrated in the capital, San Salvador.

Acceptance of Bitcoin

Reports have indicated that major chains such as McDonald's, Starbucks, and Wendy's accept Bitcoin as payment. Some stores only accept Bitcoin payments through the country's promoted Bitcoin payment app, "Chivo," while Decrypt found that Starbucks in the area accepted payments using an alternative wallet based on the Lightning Network called "Wallet of Satoshi."

However, small businesses in the bustling city center almost never accept Bitcoin. Most merchants showed disinterest when asked about Bitcoin, with a gas station security guard telling Decrypt:

Bitcoin is not really accepted anywhere.

Decrypt only found computer and mobile repair shops that accepted Bitcoin payments, but similar businesses that accept Bitcoin can be found in other Latin American countries.

Some younger Uber drivers accept Bitcoin payments through the Chivo wallet, while older drivers show disdain for this emerging technology, with one older driver stating:

Why should I accept something so unstable.

The hotel where Decrypt stayed also remained discreet about the matter, claiming that the hotel "hopes" to accept Bitcoin payments in the future.

Bitcoin Beach

Known for its surfing paradise and with only 3,000 residents, "El Zonte" is a beach town on the coast of El Salvador. After an anonymous donor injected some Bitcoin into El Zonte, an experiment for a small Bitcoin economy officially began, with detailed reports on this area previously.

Paying with Bitcoin in El Zonte is quite easy, from roadside national food pupusa vendors to beer-selling small shops, people only need a smartphone and an app to transact via the Lightning Network.

Merchants in the area are enthusiastic about this emerging technology, with some emphasizing that they accept Bitcoin and profit by "Hodling." Maria Lopez, who supports two children by selling beer near the beach with a cart, stated:

I usually make a living by selling beer near the beach with a cart. I have earned over $7,000 from Bitcoin, and President Nayib Bukele has helped us a lot.

Despite reaching national promotion levels, Bitcoin adoption in El Salvador is low and polarized, similar to Bitcoin as an investment, with a relatively low percentage of the public involved in cryptocurrency investments, and seemingly higher acceptance among younger age groups.