The Salvadoran authorities have listed some of the financial advantages of accepting BTC as official cash. The government's bitcoin regulation became effective in September, declaring BTC an official currency along with the US dollar.
According to a notification published on the agency's official site on Monday, in the first months of bitcoin becoming official currency in El Salvador, "it was able to determine the value of implementing additional technology and economic independence." The notification says that the tourist industry was among the first areas where it was feasible to confirm how BTC has benefited the nation economically.
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Morena Valdez, the Ministry of Tourism (MITUR) head, stated, "The adoption of bitcoin boosted the industry." More visitors and investors have arrived to learn about cryptocurrencies." She continued, saying:
“We took a survey to compare activities before and post-bitcoin. The tourism industry grew by over 30%.”
"Hopes of growth in this industry have been surpassed because 1.1 million tourists were expected and 1.4 million have already been received," the tourism minister added. Minister Valdez stated that the United States accounted for 60% of all tourists to El Salvador.
As per the survey titled "Crypto for Payments," there is presently a tenfold difference between customers and merchants trading in cryptocurrency. While 40% of consumers are willing to use the cryptocurrency to make purchases, only 4% of shops accept it. In comparison, this year, 60 % of both buyers and retailers agreed to participate in using/accepting cryptocurrency.
Nevertheless, actual acceptance is probably to be far delayed. The high learning curve of cryptocurrency and the complications of organizing these new payment systems within team members will be significant problems for organizations. If these obstacles are addressed, the research predicts that retailers will profit from decreased transaction costs and dispute charges while attracting a larger client base.
The price fluctuation that virtual currencies are vulnerable to could contribute to the customer-merchant gap. Merchants may be cautious to trade their goods for these currencies because they are concerned that their worth may fall dramatically the following morning.
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As a result, options such as Visa and Mastercard prepaid cryptocurrency cards have arisen. Users can fill such cards with cryptocurrency and utilize them to make payment services recognize purchases everywhere on standard credit cards. Each will transform customers' assets to fiat money on the back end before depositing them into the client's account.
