[2021-09-04] 70% of Salvadorans opposed to Bitcoin Law as Sep. 7 implementation

[Woodie]

70% of Salvadorans opposed to Bitcoin Law as Sep. 7 implementation draws near

The majority of El Salvadorans are skeptical of the country’s impending Bitcoin Law, with 90% of locals describing their understanding of crypto as poor or non-existent.

With less than a week to go before El Salvador's Bitcoin Law takes effect on Sept. 7, a majority of citizens surveyed are opposed to government-mandated cryptocurrency adoption.

A survey conducted by the local Central American University’s (UCA) Institute of Public Opinion has found that 70% of Salvadorans believe President Nayib Bukele’s Bitcoin Law, recognizing the cryptocurrency as legal tender, should be repealed.

However more than 90% of those surveyed also admitted they have a poor understanding of cryptocurrency.

The institute recorded a dire public approval rating of just 7.64% for the president — the lowest registered during Bukele’s term so far.

El Salvador’s struggling economy

Attitudes to the Bitcoin Law appear intertwined with worries over the country’s poor economic performance.

The poll found that 45% of Salvadoran citizens believe that poverty and unemployment are the two most urgent problems facing the nation, and 43% believe that the nation’s economy will worsen with the passing of the Bitcoin Law.

According to The World Bank, 22.8% of El Salvador’s population are currently living below the poverty line, while the average annual income in the country is just $3,800. More than two-thirds of Salvadorans do not believe the local economy will improve even with an increase to the minimum wage.

The poll also found that 20% of Salvadorans “openly state that they do not know what a Bitcoin is,” while a further 70% confess to having a poor understanding of cryptocurrency.


Read more https://cointelegraph.com/news/70-of-salvadorans-opposed-to-bitcoin-law-as-sep-7-implementation-draws-near

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[Ozero]

Yes, with such a general mood of the population of El Salvador, success from the introduction of bitcoin as a national currency is not expected. First, it was necessary to carry out a lot of preparatory work, explain to people how it works and how to use cryptocurrency, and only then introduce it. So far, I see that people are simply scared of the rapid implementation of bitcoin with such a large percentage of those who are not prepared for this process.
  However, the situation may change over time. Gradually, people will learn and the fear of cryptocurrency will go away.

[aoluain]

Hmmm couple of things come to mind, What were the demographics of the people
surveyed? and the major issue ahead of the official launch of Bitcoin in El Salvador
is education based on the percentages below.

The poll also found that 20% of Salvadorans “openly state that they do not know what a Bitcoin is,” while a further 70% confess to having a poor understanding of cryptocurrency.

There has to be a fear factor among a lot of people towards this Digital currency
which has no physical entity. Those who are undecided about Bitcoin have to
deal with the FUD as well as the positivity.

I watched this youtube video How Bitcoin Became El Salvador's Currency
The host interviews a number of people who either get paid their wages in Bitcoin
or who sell product and services and receive Bitcoin and for them there are only benefits.

Its going to take time but there has to be a drive from government for it to work IMO.

[buwaytress]

Its going to take time but there has to be a drive from government for it to work IMO.

There is a drive from the very top of the government, this is why it's happening. But the issue here is that it didn't happen because it was what "the people" wanted, it happened the way most state decisions happen: by the consensus of the elite. Or in this case, a lot of lobbying and convincing from people in the industry, not excluding those present at the Miami Conference, who all later flocked to El Salvador for their selfies with the president, proving they were part of the Bitcoin revolution.

Not that am against it at all, but I think, to be fair, those benefiting the most from this development aren't yet the regular people there. That's the issue. When you get pushed something you didn't necessarily ask for, need, or understand.

[bryant.coleman]

I have a feeling that the implementation was done in a haste. El Salvador could have waited for 5-6 months so that all the necessary infrastructure is in place. But they are going ahead with the plans just a few weeks after the initial announcement. All that said, I don't expect any major hiccups in the implementation. There will be some minor issues once in a while, but majority of the population will get used to it in the initial 1-2 months. And once people get to know about the benefits, they will start supporting Bitcoin.

[Lucius]

There is a drive from the very top of the government, this is why it's happening. But the issue here is that it didn't happen because it was what "the people" wanted, it happened the way most state decisions happen: by the consensus of the elite.

As far as I know, in El Salvador, power comes from the people who voted for President Bukele and his party to be in power and to win 56 of the 84 seats in parliament. I can't say if the president had any campaign promises about what he did, but a legitimately elected government has the right to make decisions - and the highest degree of democracy would primarily offer the people a referendum to decide whether or not they want Bitcoin for a legal tender.

If really 70% of the people in that country are against something, then it will not work - and in the next elections, people will elect a new president and a new ruling party.

I have a feeling that the implementation was done in a haste. El Salvador could have waited for 5-6 months so that all the necessary infrastructure is in place. But they are going ahead with the plans just a few weeks after the initial announcement.

What exactly do you refer to when you say that the necessary infrastructure is not in place? Well, roads, factories, and gas pipelines do not need to be built for the implementation of Bitcoin - and 3 months is enough to set up crypto ATMs, and to make an official crypto wallet - which is what was done. Plus, smart people think ahead and do a lot of things even before they officially announce something.

[buwaytress]

As far as I know, in El Salvador, power comes from the people who voted for President Bukele and his party to be in power and to win 56 of the 84 seats in parliament. I can't say if the president had any campaign promises about what he did, but a legitimately elected government has the right to make decisions - and the highest degree of democracy would primarily offer the people a referendum to decide whether or not they want Bitcoin for a legal tender.

If really 70% of the people in that country are against something, then it will not work - and in the next elections, people will elect a new president and a new ruling party.

Absolutely not disputing Bukele's legitimacy, far from it. I'm just reminding that this Bitcoin in El Salvador isn't quite the much-needed, much-sought after, saviour of the country many people are led to believe (thanks to poor reporting on it). Bukele and his party did well to resound with the people during elections, but fell far off the mark with this Bitcoin thing, it would seem. And we shouldn't be surprised too.

It's a poor summary of what Bukele promised to do but it's no different from the promises of two decades of government: to re-energise the economy and make the income distribution fairer. Dollarisation was the latest great failure, and I'm not saying Bitcoin is heading down the dead rabbit hole, I'm just saying it was hasty and ill-thought out, cause I honestly can't see how it's addressing the main problems.

I'd be pretty incensed as a citizen to get my $50 in BTC from a BATM (or was it $30?). Then to also know anyone investing 3 BTC in my country gets citizenship. It's crazy to think anyone would knowingly vote for that but that's not how elections work or what they're about. So, that's all cool.

But in all honesty, hope to be proven wrong. This entire ideology anyway is trial and error. I'd love to see something good come out of it =)

[UKprod]

While I strongly support Bitcoin implementation, it should never be forced upon people who do not understand the basics of Bitcoin. The Government needs to run programs to educate people on how Bitcoin has to be used and what are the safeguards to be observed before implementing Bitcoin nationwide. While it is easier to say people need to learn it right away, some people may be averse to using new technology. Hence, a proper implementation methodology needs to be prepared.

[bryant.coleman]

I have a feeling that the implementation was done in a haste. El Salvador could have waited for 5-6 months so that all the necessary infrastructure is in place. But they are going ahead with the plans just a few weeks after the initial announcement.

What exactly do you refer to when you say that the necessary infrastructure is not in place? Well, roads, factories, and gas pipelines do not need to be built for the implementation of Bitcoin - and 3 months is enough to set up crypto ATMs, and to make an official crypto wallet - which is what was done. Plus, smart people think ahead and do a lot of things even before they officially announce something.

I am a strong supporter of the move from El Salvador. But I am just saying that it takes some time to educate the ordinary people about using Bitcoin. Everyone is having a smartphone nowadays, but using it safely is  going to be a challenge. I am talking about the middle-aged and elderly people. Most of them use smartphones just to make calls. They may not be aware of various complexities associated with transacting Bitcoins using mobile wallets. Anyway, only two days remain. Let's see how it goes.

[Lucius]

~snip~

You forget that Bitcoin has been in El Salvador for some time through the Bitcoin Beach project, and that it was very quickly accepted there, by all age groups. But I don't understand why anyone assumes that from tomorrow everyone will have to use Bitcoin, because the common man still has the choice to pay everything in USD - and the only ones who have an obligation to implement Bitcoin in their business are those who sell goods and services - and for that in most cases they only need a mobile crypto wallet (official) that converts crypto to fiat and vice versa in a few seconds, free of charge.

Bitcoin as a means of payment is not an obligation for those who buy something, and therefore I do not see any problem in adapting to the masses - it will be used only by those who really want it.

[stompix]

I have a feeling that the implementation was done in a haste. El Salvador could have waited for 5-6 months so that all the necessary infrastructure is in place. But they are going ahead with the plans just a few weeks after the initial announcement. All that said, I don't expect any major hiccups in the implementation. There will be some minor issues once in a while, but majority of the population will get used to it in the initial 1-2 months.

1-2 months? Be serious, it is going to take years, people have found it hard to give up the french frank and the mark for the euro for years and you think it will take 1-2 months for a population with 10% illiteracy, 60% internet access (this also means kids at school having internet but not at home) and with just 60% mobile phone (not smartphone) ownership to adjust to this?

Unfortunately, as any other populist the president wanted to show the people how fats things are done under him, so he rushed it to the maximum. He could have accepted it as legal tender but treated it as cards are in the US, with the option to refuse payments via a cc, implement it first only when it comes to taxes, paying fines, or any other deal that is over x, like bank transfers are mandatory in the EU and wait for poeple to adapt it, the curious ones will try it and the reticent ones will simply ignore it. But forcing it down some people's throats was obvious it will trigger reactions.

Now, I thought of something funny, what if Salvador would have accepted ETH and not BTC, I wonder what the overall opinion would have been...

[cr1776]

The thing to remember is that (per AP), bitcoin usage is optional.  So all these people who oppose the law don't have to use it.  They can just go about their business as if nothing happened.  That is the nature of a free society where people can use things if they wish to, and not if they don't.

The key will come if/when a socialist, fascist, communist or some other authoritarian is elected.  Then those Salvadorans who are familiar with bitcoin and have assets in bitcoin will be somewhat protected.  Everyone else will have some time to protect themselves and their assets also.  Of course they'll probably want to swap an "official wallet" for an open source wallet at that time.

[Sithara007]

1-2 months? Be serious, it is going to take years, people have found it hard to give up the french frank and the mark for the euro for years and you think it will take 1-2 months for a population with 10% illiteracy, 60% internet access (this also means kids at school having internet but not at home) and with just 60% mobile phone (not smartphone) ownership to adjust to this?

Unfortunately, as any other populist the president wanted to show the people how fats things are done under him, so he rushed it to the maximum. He could have accepted it as legal tender but treated it as cards are in the US, with the option to refuse payments via a cc, implement it first only when it comes to taxes, paying fines, or any other deal that is over x, like bank transfers are mandatory in the EU and wait for poeple to adapt it, the curious ones will try it and the reticent ones will simply ignore it. But forcing it down some people's throats was obvious it will trigger reactions.

Now, I thought of something funny, what if Salvador would have accepted ETH and not BTC, I wonder what the overall opinion would have been...

Agreed with the first part. But for the last 2 days or so, I haven't heard too much negative coverage from El Salvador. Seems like people have got adjusted to it. A lot of the merchants and senior citizens had this misconception that Bitcoin will be forced upon them and they have now realized that there is a choice. Chivo wallet is using Lightning Network and therefore the transaction fees are low and confirmations are instant. On top of that, although merchants need to accept BTC, they can opt to get paid in USD instead (BTC is instantly converted to USD in this case).

The second part of your post is interesting. Average transaction fee with ETH currently stands at $6-$10. Imagine someone in El Salvador paying with ETH for his $2 coffee.

[stompix]

A lot of the merchants and senior citizens had this misconception that Bitcoin will be forced upon them and they have now realized that there is a choice. On top of that, although merchants need to accept BTC, they can opt to get paid in USD instead (BTC is instantly converted to USD in this case).

I love how after you're being imposed something the good part in it is that you can choose.
I probably had the wrong impression that in a free society I would be able to make my own choices from the start, you see nobody is imposing me here to accept debit or credit cards or checks, and I can even refuse some cards and accept others. This is having a choice.

Now, let's assume I take advantage of the Salvadorian freedom of choice, and I choose USD. What's next? Do it type *cash on my phone and suddenly my phone starts printing bills? Oh wait, I have to either comply with the government rules and use only their interface to withdraw my money from an ATM or to pay for myself withdrawing those coins, changing them, and all that saga.
Interesting how imposing a government control of both fiat and BTC funds now suddenly becomes wonderfull, and all this for two green candles? No, thank you!

The second part of your post is interesting. Average transaction fee with ETH currently stands at $6-$10. Imagine someone in El Salvador paying with ETH for his $2 coffee.

Replace ETH with LTC or Cardano and you're ending on the same level.
Besides, the fees don't matter since Chivo is not a wallet and it doesn't do real on-chain transactions so that could be done with any coin.

[Sweminer777]

Don't think 70% would oppose to free 30usd in their pockets.

smells like bull from bigger corps media.

[PrivacyG]

43% believe that the nation’s economy will worsen with the passing of the Bitcoin Law.

This is useless if the poll interviewed people with little to no knowledge of cryptocurrencies.  They can not find Bitcoin useful if they have no clue how it works and how it can help their economy.  When your economy is bad anyway, bringing something new and unknown to the table may not always be warmly welcomed.

The understanding of cryptocurrencies in El Salvador will take a while, probably years.  Not as long as it took the OG's of Bitcoin Talk to understand it anyway.  Today, information about cryptocurrencies is available a click away.  But only then will Bitcoin reach a potential closer to the maximum over there.  One thing is certain, if Bitcoin stays as legal tender then adoption will be on a continuous rise and this will expand to all varieties of ages.  With more users, adoption happens much quicker.

-
Regards,
PrivacyG

[davis196]

The people,who are living in poor countries are usually closed minded and very skeptical about every new technology and innovation.They also don't trust their governments.
There's going to be slow learning process that will follow the BTC adoption in El Salvador.Nobody is expecting the vast majority of the population in El Salvador to embrace Bitcoin with arms wide open.
It's important to know that nobody is forcing the people to use BTC.They can still use USD if they want to.
Adopting Bitcoin won't improve the economy of El Salvador right away,but it might be helpful for educating the younger generation about the benefits for blockchain technology and cryptocurrencies.

[Kong Hey Pakboy]

The people,who are living in poor countries are usually closed minded and very skeptical about every new technology and innovation.They also don't trust their governments.
There's going to be slow learning process that will follow the BTC adoption in El Salvador.Nobody is expecting the vast majority of the population in El Salvador to embrace Bitcoin with arms wide open.

Not close minded but more like practical, remember that not everyone is like us who are privileged enough to invest in bitcoin, they got to look out for their daily needs first before investing or something like that, we can't blame them, they didn't chose to be born poor but if the government can extend some help, probably we might see more people getting in.

[bryant.coleman]

There is proof which indicates that this percentage has changed. A few days ago, the president (Nayib Bukele) tweeted that 2.1 million Salvadorans have signed up for the Chivo wallet and completed the KYC process (which includes facial verification). Do you guys really think that someone will sign up, if they oppose the BTC implementation? And this figure represents around 35%-40% of the adult population (after adding in the expat population as well). The protests have also calmed down and people are adjusting with the new reality.