According to a research report by Ark Invest research associate David Puell, while Bitcoin is well-known in El Salvador, its usage is low, lagging behind Argentina.
Puell believes that Salvadorans’ preference for the U.S. dollar and the volatility of Bitcoin’s price are the main reasons for this cautious approach.
The U.S. dollar became legal tender in El Salvador in 2001, helping El Salvador fend off the inflationary woes plaguing its neighbors, providing a more stable and credible monetary system.